M2M Now Magazine May 2014 by Prestige Media

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AUTOMOTIVE M2M Fast forward to connected vehicles Telit’s Oozi Cats on updating modules and back end services over the air

FLEET & ASSET MANAGEMENT Solution market for vehicles consolidates M2M Now Insight Out July 2014

SMART UTILITIES

mHEALTH

SMART CITIES

THE BLACK BOOK

Communications integration in utility assets speeds up M2M Now Insight Out September 2014

Wellness is just the opening gambit in mobile health! M2M Now Insight Out December 2014

Better lives not bigger profits push up interest in smarter cities M2M Now Insight Out February 2015

Five key industry verticals assessed by leading M2M/IoT analysts All in one book. Out February 2015

PLUS: M2M Research shows how to Boost RoI • Special Supplement: Service Delivery & Platforms • Network modernisation is essential for Smart Home revenues • KORE savours Jazz and T-Mobile links • M2M's Wild West is still fun • in1SIM enables switchable network subscriptions • People are on the Move • DCN looks to agri-business • M2M roaming costs eliminated in North America • www.m2mnow.biz

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TO DELIVER ON THE PROMISE OF TOTAL M2M INTEGRATION SIMPLIFICATION Connecting assets to the Internet of Things, Your provider must bring you • • • •

A portfolio of modules in all trending wireless technologies plus GNSS to address all your design requirements without compromises Compliance to Industry’s most demanding quality standards to ensure your devices keep operating where others fail Services to provide, manage and protect your deployment’s connectivity under mobile networks keeping you in control of costs and performance Industry’s leading PaaS technologies to enable applications, connecting the data from your assets to any and all cloud services and enterprise systems they must integrate

PAN SHORT TO LONG RANGE RF

FULL PROJECT ASSISTANCE

GNSS POSITIONING WWAN

POSITIONING

CELLULAR MOBILE

CLOUD

THE INTERNET OF THINGS AWAITS YOU. START CONNECTING YOUR DEVICES AND BRING YOUR IDEAS TO LIFE FASTER, WITH LESS COST AND RISK. CHOOSE TELIT. WWW.TELIT.COM

CONTENTS EP TR H SIG IN

E V I T O OM2M T AU M

AUTOMOTIVE

TALKING HEADS

INSIGHT REPORT

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SERVICE DELIVERY & PLATFORMS SUPPLEMENT

50 M2M PLATFORMS

57 DEVELOPMENT PLATFORM

IN THIS ISSUE 4 5 6 7 9 10 11

EDITOR’S COMMENT One of M2M’s ‘dirty little secrets’ MARKET NEWS Network upgrades are vital for smart homes; How to increase M2M RoI COMPANY NEWS KORE swings a deal with Jazz; Telenor does more PEOPLE NEWS HomeGrid Forum elects and promotes; Multi-Tech adds four to top roles EVENT DIARY What’s On in the world of M2M & IoT PRODUCT NEWS DCN does agri-business with Anemon; T-Mobile eliminates US roaming costs CONTRACT NEWS & HOT LIST Oberthur wins twice; and new orders are listed from Norway to Taiwan

TALKING HEADS Telit’s Oozi Cats describes the challenges of connecting vehicles to the internet

M2M NOW INSIGHT REPORT In the second of our new series of specially commissioned Insight Reports, Greg Basich of Strategy Analytics examines the opportunities and obstacles facing anyone bringing Automotive M2M services to market for car makers and after-market consumers.

SUPPLEMENT: M2M SERVICE DELIVERY & PLATFORMS M2M Now’s unrivalled 20-page Supplement finds that M2M service business models are evolving fast. It’s just as well, this still looks like the Wild West. INSIGHT REPORT Automotive M2M Report

Cover Sponsor: With over 12 years of unparalleled focus on M2M, reducing technical risk and shortening time to market for OEMs and integrators, Telit’s ONE STOP. ONE SHOP delivers all necessary services and products to connect assets to the Internet of Things. Whether sourcing single products or full end-to-end solutions, count on M2M’s broadest portfolio in cellular, short range and positioning technologies paired with m2mAIR services covering application enablement as well as deployment management & connectivity under mobile networks and over the internet & cloud. Telit benchmark-quality products and services are delivered with global support and logistics exceeding exacting requirements from customers large and small. Telit’s ONE STOP. ONE SHOP. delivers the Internet of Things made Plug & Play. Now innovate! www.telit.com M2M Now

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The report’s author is Greg Basich, senior analyst, Strategy Analytics Automotive Multimedia and Communications Service

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Snapshot Automotive infotainment and telematics are coming into their own. Automakers are equipping their vehicles with advanced infotainment, safety and, for electric vehicles, powertrain management systems that make use of wired and wireless connectivity to enable connections to outside networks. In this new connected car environment, the entire industry value chain associated with the aforementioned technologies is growing and provides new opportunities. This report, prepared by Strategy Analytics exclusively for M2M Now magazine, provides a highlevel overview of different aspects of the connected car industry and its competitive environment.

Executive Summary

AUTOMOTIVE M2M Fast forward to connected vehicles

Automotive Meets Wireless Shift

connectivity via mobile device tethering, enabling use of smartphone functions in vehicles. Automakers are also in the process of rolling out embedded solutions. Over the long run, embedded connectivity, along with a range of other automotive sensor technologies, will be used to enable autonomous driving. This report examines the overall automotive M2M marketplace in this context. One question many outside the industry pose is ‘Why connect vehicles at all?’ For consumers, the benefits include access to a range of services that enable more efficient, safer transportation. For automakers, connectivity and the functions and services enabled by it allow them to differentiate their brands, create new sources of revenue and find ways to mitigate handheld use of mobile devices in vehicles, making cars safer to drive in an era when ubiquitous connectivity is expected in the developed world.

Telit’s Oozi Cats on updating modules and back end services over the air The wireless and automotive industries are converging. This image shows some of the questions and considerations partners in the telematics value chain must evaluate in order to develop successful automotive connectivity platforms.

Embedded or tethered connections are enabling a host of new business models and opportunities in the global automotive industry. Today, nearly all automakers are focused on providing

In terms of implementing tethered connectivity, many original equipment manufacturers (OEMs) are looking to mobile device apps and operating systems for inspiration, developing and using platforms that enable the addition of, and updates to, infotainment features and content. Beyond ubiquitous mobile device connectivity,

GOLD SPONSORS 18

FLEET & ASSET MANAGEMENT Solution market for vehicles consolidates M2M Now Insight Out July 2014

SMART UTILITIES

mHEALTH

Communications integration in utility assets speeds up M2M Now Insight Out September 2014

Wellness is just the opening gambit in mobile health! M2M Now Insight Out December 2014

SMART CITIES Better lives not bigger profits push up interest in smarter cities M2M Now Insight Out February 2015

March 2014

THE BLACK BOOK Five key industry verticals assessed by leading M2M/IoT analysts All in one book. Out February 2015

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COMMENT

One of M2M’s ‘dirty little secrets’ There was a breath of fresh air this month from Will Franks, CEO of Senaptic, a company spun out of UK-based technology provider Plextek. Senaptic don’t roll out technology, it seems, they roll out a proven business model. While global giants are still offering “slideware” on the future of Smart Cities in the Internet of Everything, Senaptic has already deployed over 8 million devices covering applications that include smart city monitoring of parking availability (Moscow, Russia), vehicle tracking, smart metering and remote control and monitoring of hundreds of thousands of UK street lights (search ‘Senaptic’ on www.m2mnow.biz).

Jeremy Cowan, Editor & Publisher, M2M Now

In this issue, we are proud to bring you our second Insight Report, this time on Automotive M2M. Strategy Analytics’ Automotive Multimedia and Communications Service’s global report (pages 18-25), specially commissioned by M2M Now, covers brought-in and built-in connectivity, telematics platforms, eCall, car sharing, V2X technologies and driverless cars. You won’t be surprised to learn that it also looks at the revenue challenge. On pages 37-40 Steve Millstein tackles this challenge, one of M2M’s ‘dirty little secrets’, pointing to pitiful renewal rates of just 5-10% for connected car subscriptions when free services lapse. It has encouraged his company, Aeris, to adopt a very different approach to monetising automotive M2M. Wait, there’s more. There’s a special bound-in supplement (starting on page 41) looking at the challenges of delivering M2M services in what Jasper’s CEO calls “the Wild, Wild West”, and we examine what this means for M2M platforms. We also aim to banish the confusion around multiple uses of the term ‘M2M platform’. Finally, if your copy of M2M Now also goes West don’t worry, you can read it free online at m2mnow.biz.

Contributors in this issue of M2M Now We are proud to bring you the work of leading writers, commentators and journalists in this issue of M2M Now. They include:

EDITOR & PUBLISHER Jeremy Cowan Tel: +44 (0) 1420 588638 j.cowan@m2mnow.biz DIGITAL EDITOR Nathalie Bisnar Tel: +44 (0) 1732 808690 n.bisnar@m2mnow.biz BUSINESS DEVELOPMENT DIRECTOR Cherisse Jameson Tel: +44 (0) 1732 807410 c.jameson@m2mnow.biz

Robin DukeWoolley is CEO of Beecham Research and on page 46 he interviews KORE’s Alex Brisbourne about spotting 4G opportunities.

M2M Now’s deputy editor, Georgina Elrington, finds the Amsterdam event, Connected Cars 2014 is all about collective revenue.

Saverio Romeo, also from Beecham, chats with Elliot Mackenzie, founder of dataplacity, about connected intelligence.

Freelance telecoms writer, Steve Rogerson, gives you a whirlwind guide to M2M platforms.

DIRECTOR OF STRATEGIC PLANNING Charlie Bisnar Tel: +44 (0) 1732 807411 charlie@wkm-global.com

PUBLISHED BY WeKnow Media Ltd. Suite 138, 70 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU, UK Tel: +44 (0) 1732 807411

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EDITORIAL ADVISORS

Olivier Beaujard, vice-president market development, Sierra Wireless

Erik Brenneis, head of Vodafone M2M

Alexander Bufalino, SVP, Global Marketing, Telit.

Robin DukeWoolley, CEO, Beecham Research

Baard Eilertsen, president & CEO, Maingate

Gwenn Larsson, director, M2M Global Expansion, Telenor

Andrew Parker, project marketing director, Connected Living, GSMA

Gert Pauwels, M2M marketing director, Orange Business

Bill Zujewski, CMO & EVP, Product Strategy at Axeda Corp All rights reserved. No part of this publication may be copied, stored, published or © WeKnow Media Ltd 2014 in any way reproduced without the prior written consent of the Publisher. M2M Now: ISSN 2046-5882

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MARKET NEWS

Network upgrades essential to service delivery for smart home revenues: Juniper A white paper from Juniper Research, Smart Home Ecosystems & the Internet of Things, forecasts that global market smart home service revenues will reach US$71 billion by 2018, up from $33 billion last year. It predicts that 80% of total smart home service revenues will come from entertainment services with growth emerging from high-profile OTT (over-the-top) content providers such as Netflix, LOVEFiLM and Amazon Instant Video. Demand is being further fuelled by the mass adoption of connected TVs.

Another report from the firm, M2M & Embedded Strategies: Telematics, POS, mHealth, Metering & Buildings 2013-2018, indicates that M2M service revenues will reach US$20 billion next year, attributing the change to falling equipment costs. It also cites that monetisation opportunities, offered by M2M services, differ significantly according to the vertical sector. And, while telematics is particularly positive, smart metering is still struggling to find an avenue for revenue generation.

Research reveals best practices for M2M operational efficiency and increased RoI

According to the document, entitled, Mobile Network Operator Approaches to M2M & Strategies for Ensuring Profitable Services, most operators can achieve optimal returns on investment (RoI) by leveraging third-party partnerships. The paper discusses: • The importance of platform flexibility to enable as many application-specific use cases as possible

M2M Now

ORBCOMM launches satellite modems for system integrators and resellers A global provider of M2M solutions, ORBCOMM Inc, has now made its next generation OG2 satellite modems available. These are designed for OEM integration into satellite M2M applications targeted for the transportation and distribution, heavy equipment, oil and gas, and government markets. The company’s partner, Quake Global, a manufacturer of asset tracking satellite M2M modems, is also offering a full suite of devices, including the QPRO which will enable M2M communications across ORBCOMM’s OG1 and OG2 satellite networks. Quake Global’s dual-mode QPRO is a self-contained, environmentally-sealed device with GPS tailored for M2M applications in the heavy equipment, transportation and oil and gas industries.

However, the influx of Internet of Things (IoT) smart home devices will place the networks under greater strain. Therefore, warns Juniper, stakeholders need to ensure that their networks are modernised and transitioned from legacy technologies, such as IPv4 and CGNAT, if they are to remain a viable player. Increasing security and control elements will also reveal a service provider opportunity approaching $12 billion by 2018 – as automation increases.

Following research commissioned by Aeris Communications, Informa Telecoms has published a white paper which considers the options available to MNOs looking to improve profitability in machineto-machine services (M2M).

NEWS IN BRIEF

• How third-party Platform-as-aService approaches can help operators get to market quickly without large capital investment • Using a vendor to host a virtualised M2M core network as a logical and cost-effective alternative to building a secondary M2M core, and • Leveraging specialised support and effective use of the cloud to minimise M2M operational costs, while offering mobile network operators the flexibility they require. “By licensing an M2M platform, an operator will benefit from the financial and intellectual investment already made by the vendor of said platform. But to focus too heavily on outsourcing and suggest that an operator should not consider any internal development, would risk marginalising the operator’s role in M2M,” said Jamie Moss, senior analyst at Informa Telecoms & Media.

Mobily and Jasper Wireless go live in Saudi Arabia Jasper is helping Mobily, a Saudi Arabian communications service provider, with the flexibility and ease of implementation to deliver applications and services to profitably connect and manage a range of embedded wireless devices across Mobily's key vertical markets which include: construction, utilities, mHealth, and connected vehicles. The deployment and launch of M2M services in Saudi Arabia, by Mobily, is aligned with the Etisalat Group M2M strategy of creating synergies between its subsidiaries. The number of wireless M2M connections in the Middle East is forecast to rise to 119.7 million by the end of 2016, according to research by industry analyst firm Visiongain.

COMPANY NEWS

KORE acquires M2M network service provider Jazz Wireless Data and its direct links with T-Mobile

NEWS IN BRIEF Sun Capital Partners to buy advanced meter infrastructure provider Aclara An affiliate of Sun Capital Partners, Inc. is to acquire Aclara Technologies LLC from ESCO Technologies Inc. Aclara is a North American advanced meter infrastructure (AMI) solutions provider, and will become an independent business. Aclara’s AMI solutions are predominantly deployed by US electric, gas and water utilities. AMI includes the two-way communications device within a meter, as well as the supporting network infrastructure for smart meters that allow utilities to remotely extract real-time consumption data and interact with their customers. By upgrading to AMI, utilities can at a minimum lower their costs by eliminating the need for manual readings, as well as improve the efficiency of their networks.

KORE, said to be the world’s largest wireless network services provider specialising in machine-to-machine (M2M) communications, has completed its acquisition of Jazz Wireless Data, a provider of M2M networking services in North America. Rusty Lhamon, director, T-Mobile M2M

Under the terms of the agreement, all existing Jazz customers will gain access to the KORE network and to key KORE services including KORE Global ConnectTM and PRiSMProTM. KORE will also pull in the experienced M2M network management and technical teams from Jazz, as well as the interconnect agreement between Jazz and T-Mobile. “KORE remains committed to the vibrancy of the M2M market and we

have recognised the overwhelming need for managed connectivity in its continued growth. The acquisition of Jazz Wireless Data is a significant step in our tireless pursuit to provide customers with the greatest mix of technology and connectivity services that help drive their businesses forward,” said Alex Brisbourne, president and COO of KORE. “The combination of KORE and Jazz is a game changer. Bringing T-Mobile’s Un-carrier approach together with KORE’s reach, impressive management tools and stellar reputation will further expand customers’ ability to employ everything from 2G services to data-intensive solutions that leverage the nation’s fastest LTE network,” said Rusty Lhamon, director, T-Mobile M2M.

Telenor expands its capabilities to meet global IoT customer demand

Lyse Elnett and Aidon developing Norway’s next generation of smart metering Lyse Elnett, an electricity utility in South-Western Norway, has chosen Aidon for a delivery of energy service devices. The project will implement advanced Automatic Meter Reading (AMR) solutions for 144,000 Lyse Elnett customers. In addition to remote reading, the new solution will enable the energy company to collect hourly electricity consumption values and information from the distribution network to secure better energy delivery to consumers. Users will also be able to manage their energy usage in a smarter way. The installation of the new meters is planned to start in late 2014 or early 2015.

Telenor Connexion has selected Jasper’s cloud-based platform to complement its portfolio of connected business solutions. This latest strategy aims to strengthen Telenor Connexion’s position for global business, create flexibility for future customer needs, and support a technology-agnostic approach. As companies are connecting their products at an accelerating pace, the base of industrial M2M applications is now being joined by more rapid take-up under the broader Internet of Things (IoT) vision in the consumer marketplace. “We see that the needs vary within different industries and of different

customers. By expanding our capabilities we ensure that our growing customer base benefits from the best offering possible and can take advantage of future development. Thereby we keep our leading edge,” said Per Simonsen, CEO of Telenor Connexion. Telenor Connexion already deploys the Ericsson DCP platform. This is an advanced M2M dedicated platform that it developed in 2009 and subsequently sold to Ericsson in 2011. “Deploying services from the two leading platform providers ensures greater flexibility and enables us to collaborate with new partners and operators in global deployments,” Simonsen pointed out.

For the latest Company, Product, Contract, Market & People News go to: www.m2mnow.biz

M2M Now

PEOPLE NEWS

HomeGrid Forum elects new officers and promotes Stark to board chair

Barbara Stark

Barbara Stark has been elevated to chairman of the HomeGrid Forum Board. She has been a board member since June 2013 following the merger of HomeGrid Forum and HomePNA.

With more than 25 years of experience in telecommunications at AT&T, Stark has a strong reputation for driving consensus and developments. “I am delighted to be elected as board chair at this critical time for both G.hn and HomePNA technologies. We have a big job ahead in the coming year, and I look

forward to making key contributions within HomeGrid Forum as we transform the face of the home networking market.” BT’s David Thorne has been elected as vicepresident of HomeGrid Forum. Thorne has 25 years in the telecoms business at British Telecom, focused on technology strategy. David Thorne His current role includes consulting for all BT lines of business regarding access and home networking technologies.

Orga Systems selects van Elk as vice-president for AMER Business support systems provider, Orga Systems has brought in Paul van Elk as vicePaul van Elk, president for the AMER Orga Systems region. Van Elk, a multinational executive, has collected almost two decades of experience having worked with both leading

telecom operators and suppliers. He holds an M.Sc. in electrical engineering and an MBA in finance. In his new function, Paul van Elk will report directly to the CEO and support Orga Systems in strengthening its existing customer relationships and establishing new ones.

KAAZING confirms Vikram Mehta as CEO Vikram Mehta, formerly the cofounder, president and CEO of BLADE Network Technologies, has joined KAAZING as CEO. KAAZING describes itself as a web communications innovator for the Internet of Things. Vikram brings over 26 years of industry experience, including 12 years at Hewlett Packard,

Enterprise Servers, Americas. He previously brokered the spin-out of Nortel’s Blade Server Switch Business Unit, establishing BLADE Network Technologies as an independent company in February 2006, and delivering an 11-fold return to the company’s investors.

Multi-Tech Systems adds four to its management team Rod Landers has taken the helm as chief executive officer of Multi-Tech Systems, bringing 20 years of experience in high tech and engineering. Most notably, he founded Spectrum Design Solutions in 2005, which was purchased by Digi International. Scott Wilken is the company’s new CTO, having previously been a product development and technology executive with a background in M2M and IoT. He comes to Multi-Tech from Logic PD, a product innovation and realisation services company. In addition, Daniel Quant has been appointed as vice-president of product management, while Bryan M. Eagle III has been installed as the company’s VP of business development and communications.

DCN gets a new chief technology officer Effective immediately, Device Cloud Networks has named John Carvalho as its CTO. He will lead the technical operations for the company’s next phase of growth for its M2M service enablement platform. A 20 year veteran of GSM-based mobile communications systems, Carvalho joins DCN after an instrumental role with Comcast in the deployment of a WiFi network covering most of the north-eastern US.

Dodds appointed CEO of Tele2 Netherlands Jeff Dodds is the new CEO of Tele2 Netherlands, tasked with maximising Tele2’s Dutch business. Dodds spent the past five years working for Virgin Media, most recently in the role of chief marketing officer. Since October 2013, he has been acting as an executive strategy consultant, working with European telecoms companies Liberty Global, ComHem, and leading UK advertising agency, Bartle Bogle Hegarty.

Renesas promotes Hannawald to general manager of ICBG Michael Hannawald has been promoted to the position of general manager of the Industrial & Communications Business Group (ICBG) by Renesas Electronics Europe. Hannawald was previously its senior director. M2M Now

“Michael Hannawald has a wealth of experience on both the technical and marketing levels,” said Gerd Look, president of Renesas Electronics Europe. “This is important in the ICBG business unit, which is a key driver of Renesas’ strategic orientation in

Europe. I’m confident that Michael will continue to be instrumental in helping us achieve the goals we have set for it.”

Michael Hannawald

EVENT DIARY

M2M World Congress 2014 April 24-25, 2014 London, UK www.m2mconference.com

locate, communicate, accelerate

Telematics Detroit 2014 June 4-5, 2014 Detroit, Michigan, USA www.telematicsupdate.com/detroit

Connected Cities Middle East 2014 June 8-11, 2014 Dubai, UAE www.connectedcitiesme.com

Utility Energy Storage Europe Axeda Connexion 2014 May 5-8, 2014 Boston, Massachusetts, USA http://connexion.axeda.com

mHealth Summit Europe 2014 May 6-8, 2014 Berlin, Germany www.mhealthsummit.eu

Internet of Things North America

June 18-19, 2014 London, UK www.smi-online.co.uk/utility/uk/ conference/Utility-Energy-Storage

Meter Asset Management June 23-24, 2014 Holiday Inn Regents Park, London, UK www.smi-online.co.uk/meter11.asp

Connected Cars 2014 June 24-25, 2014 RAI Centre, Amsterdam, Netherlands http://connectedcarsworld.com/

May 14-15, 2014 Milwaukee, Wisconsin, USA www.remotemagazine.com/internetof things

u-blox u-b b lo ox SARA-U2: S SA A RA RA-U2 U2:

Digital Services World Congress 2014 June 2-4, 2014 Thistle Marble Arch, London, UK http://digitalservicescongress.com

the th h e world’s wo o rld ld’’s smallest small lle le e stt 3 module 3G modu dule le M2M Evolution Conference & Expo August 11-14, 2014 The Rio, Las Vegas, Nevada, USA To register for the event with your M2M Now 20% discount go to: www.tmcnet.com/scripts/itexpo/fall14 /registration.aspx?theplan=m2m&sc= NOW

TM Forum Live! June 2-5, 2014 Nice, France www.tmforumlive.org/about-tmforum-live/

M2M Now

M2M Zone Conference & Pavilion @ CTIA 2014 Super Mobility September 9-11, 2014 Las Vegas, Nevada, USA http://m2mzone.com/events/CTIA_20 14/CTIA2014_Pavillion.asp

PRODUCT NEWS

Device Cloud Networks partners with Anemon for agriculture and farming

Device Cloud Networks (DCN) is collaborating with with Anemon, a provider of telemetry-based biometric monitoring for animals, to deliver a machine-to-machine solution for the agricultural and farming industries. It will automate the monitoring of lactation cycles for individual animals as well as herds through electronic sensor fusion.

Artificial insemination of dairy cows, and other farm animals, requires accurate and precise heat detection. The traditional, manual process – where breeders spend hours observing to gauge optimal timing for best results – has a significant impact on productivity as well as profitability for farmers. Presently, about 50% of insemination times are missed due to the difficulty in accurately monitoring the animal.

T-Mobile eliminates M2M roaming costs in US and Canada with eSim eSIM, from T-Mobile, reportedly eliminates roaming costs for M2M communication in the US and Canada, giving customers local data rates when located in each respective country. For example, a trucking company using mapping services, video monitoring, email, fleet tracking software, and vehicle diagnostics might easily use 100MB of data per month travelling between the two

locations, with single vehicle roaming costs as much as US$200 per month (or $2,400 per year). "The Internet of Things knows no boundaries, or at least it shouldn't have to," said Rusty Lhamon, director of M2M, T-Mobile. "This unique approach to cross-border wireless communication is designed to eliminate the issue of permanent M2M roaming and makes connectivity seamless and simple."

ThingPark Wireless® brings new approach in IoT sensors

Available from Actility, ThingPark Wireless® brings off-the-shelf aid for M2M sensor OEMs and application providers looking to improve market adoption. With easy access to the cloud, smart cities and buildings only need a small antenna on a rooftop to connect sensors in a 2-5 km radius for dense cities – or 15 km radius in countryside applications. LoRa™ technology enables in-building penetration where cellular and GPS cannot reach. "This all-inclusive approach is new in the M2M world. Wireless sensor vendors are missing both a cost-effective long-range wireless network and an easy-to-use application framework,” said Olivier Hersent, Actility CEO.

Telekom Austria Group expands M2M portfolio with six industry-specific telematics offerings New telematics products have come to market, due to recent collaboration Bernd Liebscher between Telekom Austria Group M2M, and Austrian telematics GPS vendor, CEplus. Telekom Austria Group M2M's assettracking and fleet management portfolio now includes: POLAR, for automated documentation of winter maintenance services including snow clearing and salt spreading; PILOT, an electronic driver log for field service

provider fleets and freight vehicles; LORRY, for the fleet management of trucks with an automatic alarm for fuel theft; THERMO, for the monitoring of cooling in the chemical, pharmaceutical and food industries; COUNTRY, tracking operating hours for the agricultural and forestry industries with hardware designed for use in more challenging conditions; and ROBUSTO, which tracks location and operating hours for the construction industry, and has an event-based alert system to protect unattended vehicles.

"With our solution portfolio for efficient fleet management and asset tracking, we are able to flexibly meet every possible customer requirement,” said Bernd Liebscher, managing director Telekom Austria Group M2M. Developed within the framework of the ‘Unlock M2M’ partnership programme, initiated by Telekom Austria Group M2M, these cloudbased solutions are all vendorneutral. They are also easy to install on both old and new vehicles.

M2M Now

CONTRACT NEWS … As DCN also takes OT technology Oberthur Technologies M-Connect selected by in1SIM to manage mobile connectivity in M2M… Global M2M connectivity supplier, in1SIM, is to implement Oberthur Technologies’ (OT) M-Connect to offer optimum mobile connectivity to M2M players. The deal aims to address the need for a global and reliable way to connect smart objects to mobile networks. OT’s M-Connect solution has been designed, to GSMA standards, to securely activate and change subscriptions in objects remotely. It will enable in1SIM to download the best mobile subscription and switch to another network in case of loss of connectivity. The first market trials are planned this year with energy distribution companies in Northern Europe. Beyond the utilities sector, the solution is available for security and safety, vehicle telematics and industrial remote monitoring customers.

Device Cloud Networks (DCN) has also brought in Oberthur Technologies’ M-Connect solution to remotely manage the mobile Dave Williams connectivity subscriptions of M2M devices, across its mobile network operator alliance, in service of its original equipment manufacturer (OEM) and enterprise customers. DCN will integrate M-Connect to manage the global connectivity of devices and the need for OEMs – such as car makers or smart meter manufacturers – to streamline production, distribution, and device lifecycle management. The company hopes to commercialise the solution globally this year, commencing with North America and Europe. The product has been designed to securely load

subscriptions in M2M devices over-the-air at first activation as well as during the entire device lifecycle. In a statement, Dave Williams, chief executive at Device Cloud Networks, said: “DCN’s M2M solution is coupled with our rapidly growing Global Operator Alliance to accelerate time to market and achieve a wider footprint of coverage. OT’s MConnect solution will be a critical part of our offer to build the bridge between our mobile operator partners and OEM customers.” Building on that bridge, DCN also signed an agreement with Arrow Electronics for an M2M Connectivity and service enablement platform. Under the agreement Arrow customers in the Americas, will have access to DCN’s global service provisioning and connectivity, using a variety of device modules.

THE CONTRACT HOT LIST M2M Now May 2014 It's free to be included in The Contract Hot List, which shows the companies announcing recent contract wins or product deployments. Email your contract details to us now, marked "Hot List" at <news@m2mnow.biz> Vendor/Partners Aidon Asavie Technologies Cloudera Concirrus Device Cloud Networks Device Cloud Networks Essence Gemalto Inmarsat Iridium Jasper KORE Wireless KORE Wireless Numerex® Oberthur Technologies Oberthur Technologies POST Luxembourg Qualcomm Qualcomm Qualcomm RacoWireless SAP Sierra Wireless Sprint Tele2 AB Telit Wireless Solutions Telit Wireless Solutions Telit Wireless Solutions Telogis

Client, Country Lyse Elnett, Norway

Product / Service (Duration & Value) Contract to deliver advanced automatic meter reading technology to 144,000 customers in Rogaland Telenor Connexion, Sweden Deal to implement M2M Connect service for increased flexibility in global offering Kainos, London Alliance to tackle big data in Europe with enterprise class analytics powered by Apache Hadoop™ SolveIT, Dubai Partnership to help reduce M2M deployment from months to weeks in Middle East Arrow Electronics, USA Contract to provide M2M connectivity and services enablement platform for customers in Americas Anemon, Switzerland Partnership to deploy biometric monitoring for dairy cows and animal husbandry Gulfstream, Russia Deal to utilise WeR@Home system to deliver customer kits for smartphone home control and security The Morey Corporation, USA Contract to enable M2M connectivity with actionable intelligence to manage mixed fleets Global distribution partnership to extend satellite M2M connectivity into new markets RacoWireless, USA ZTR Control Systems, USA Contract to provide satellite connectivity to extend coverage for remote M2M monitoring Giesecke & Devrient, Germany Joint solution brings single SIM worldwide platform with local service for mobile IoT AirIQ, Canada Agreement to provide access to global network in North America and Europe Attack, Taiwan Global partnership to provide customers with single SIM telematics starter kit ETwater®, USA System upgrade for smart water irrigation system to next generation network and app technologies in1SIM, Finland Deal to use M-Connect to enable best mobile subscription and network selection for M2M connectivity Device Cloud Networks, USA Contract to use M-Connect for global M2M remote subscription management Jasper, USA Agreement to help open up M2M market in Luxemburg for international brands Medixine, Finland Healthcare collaboration to offer disease management and remote monitoring in Europe Next Step Citizen, Denmark Agreement to deploy remote patient monitoring across Danish regions and municipalities PARI, Germany Deal to provide connectivity for global expansion of telemedicine Audi, USA Contract win to support new AudiConnect® 4G LTE connected vehicles ILS Technology, USA Collaboration to integrate deviceWISE M2M AEP with SAP HANA® enables new IoT & M2M intelligence Tech Mahindra, India Alliance to support M2M on any mobile network globally Strategic relationship to provide mobile resource management FleetLocate for fleet operators Spireon, USA CSL DualCom, UK 3-year partnership to optimise European M2M connectivity from manufacturing to end-user DCS Solutions, USA Contract to employ cellular data card for mobile data in wireless N-Router NimbleLink, USA Partnership to power new family of Skywire™ embedded modems with cellular M2M connectivity DCS Solutions, USA Deal to implement cellular/SIM functionality in Text2Valet parking solution General Motors, USA To provide telematics with actionable data to help control fleet costs and increase safety

Awarded 2.2014 2.2014 2.2014 1.2014 2.2014 2.2014 2.2014 2.2014 2.2014 3.2014 2.2014 2.2014 3.2014 3.2014 2.2014 2.2014 2.2014 2.2014 2.2014 2.2014 2.2014 2.2014 2.2014 3.2014 3.2014 2.2014 3.2014 3.2014 3.2014

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TALKING HEADS

Oozi Cats is CEO of Telit

Fast forward to connected vehicles

M2M Now: Is 3G and LTE connectivity mainly enabling services in new vehicles? Or are after-market sales already benefiting used car owners?

efficient and in the States this process has already started. Therefore, by deploying LTE on-board platforms auto makers will avoid premature obsolescence.

Oozi Cats, Telit: The answer to the first question is yes and to date the services they enable are a standard feature on up-market brands like Audi, BMW and Mercedes Benz, but in recent years they are increasingly found on mid-range cars.

And of course electric cars rely on the in-car systems. Reliable data is obviously needed in order to check on the status of the batteries and when on a journey, to indicate when and where they should be recharged. This is a good example of the combination of vehicular data with information retrieved from a cloud-based service platform.

LTE is the preferred network for two reasons. One, its intrinsic efficiency enables the simultaneous delivery of an array of entertainment, traffic, navigation, maintenance and safety features. And two, operators are going to retire networks such as 2G that are less

Right now LTE services are not ubiquitous in most markets, but itâ&#x20AC;&#x2122;s only a question of when, not if. When the on-board platform cannot find an

â&#x2013;ź

Once the preserve of the executive limousine, connected vehicle technology is reaching ever deeper into the car market. But what are the challenges faced in connecting vehicles to the internet and in vehicle-to-vehicle communications? M2M Now talks to Oozi Cats, CEO of Telit, a company with the stated goal of becoming the market leading supplier of automotive-grade modules.

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“Various security initiatives are addressing the issue (that vehicles are vulnerable to hacking).” Oozi Cats, Telit

LTE network it will fall back to 3G and services will continue, but the quality of streaming video will obviously be diminished.

the automotive industry? And how are suppliers like Telit responding?

Used car owners can connect a dongle to the vehicle’s OBD port and obtain a number of services such as eCall, stolen vehicle recovery and usage-based insurance. However this is not a practical proposition for entertainment services. Currently, there is a mix of services such as eCall that employ low data rate connectivity as well as driver-oriented services like infotainment that employ high speed connections. The technology that will enable convergence will be LTE, particularly when Voice over LTE is rolled out in all networks.

OC: Like most things in our industry GNSS is evolving at an amazing speed. Deployment is largely a result of legislation regarding driver safety. Different regional legislations mandate different GNSS technologies: Europe, the Middle East & Africa (EMEA) will go for GPS/Galileo; China is mandating Compass / Beidou; Russia has GLONASS. Telit has an on-going programme that matches and anticipates these developments, for example, our Jupiter SL871 supports four constellations. We provide the relevant technologies in a seamless way, either as a standalone module, or fully integrated in cellular plus GNSS combo devices. Our product strategy is to have a bestin-class offer in every technology sector.

OC: The German and French governments as well as the European Commission are also researching this development. Looking further down the Internet-connected car road we have two key developments: V2X and ADAS. V2X comprises communications between vehicles as well as vehicle-toinfrastructure services. Basically V2X creates an awareness zone around the driver’s vehicle: You can think of it as a wireless LAN. Initially, vehicle-to-infrastructure services will focus on warnings as well as safety issues such as blind spots, lane departure and oncoming vehicle. ADAS - advanced driver assistance systems - takes in various road safety applications, many of which are on the cutting edge of emerging automotive technologies. Adaptive light control systems, for example, retrieve route information and allow the headlights to swivel and rotate to better illuminate bends just before they arrive. Features like adapted speed and braking technologies are also emerging, along with controlled steering and autonomous driving. Longer term, the technological advances behind the internet-connected car will eventually lead to self-driving vehicles. M2M Now: How are GNSS product requirements evolving for

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Location has become a utility, both inside and outside the car. Units often display moving maps and information about location, speed, direction, nearby streets and points of interest. Outside the automotive industry there’s also an accelerating demand for location-based services products such as smart watches, personally connected healthcare devices and other wearable products. In addition Telit has developed m2mLOCATE a unique location-based service that gives Telit cellular module users an additional means of obtaining a location fix. The service derives device position from a triangulation process, which uses cellular base-stations as references. It provides basic position data in all indoor situations such as garages and tunnels. Services are obviously based on a user’s geographic location, but if you think about it they answer three basic questions. One, where am I? Two, what’s around me? And three, how do I get to where I want to be? Or, in the case of some emergency services, how do others get to me? Regular GPS is already providing answers, but the introduction of hybrid positioning and multi-GNSS services is set to guarantee the availability of the location information in all conditions and also to enable the creation of an entirely new breed of applications. ▼

M2M Now: The US Department of Transportation recently announced that it might require car makers to equip new vehicles with technology that enables vehicles to communicate with each other to prevent collisions. Could this also drive the adoption of the Internet-connected car?

TALKING HEADS “All our modules, as well as the back end services, can be updated over the air.” Oozi Cats, Telit

M2M Now: How does the acquisition of NXP's automotive on-board platform strengthen your offer and why did you create a new business unit, Telit Automotive Solutions? OC: NXP’s on-board platform is an integrated, certified component that has all the functionality needed to create standalone On-Board Units – OBUs. Integration is enabled by a comprehensive range of interfaces and ATOP (Telit’s automotive platform) can also be employed as a front-end to more advanced, open-service telematics platforms. In a nutshell, it's an impressive single-component turnkey solution having tight hardware and software integration. ATOP should therefore be seen as a complementary addition to our comprehensive portfolio of dedicated automotive modules. They will continue to be the preferred option for many vehicle manufacturers and we shall continue to develop the existing product line.

M2M Now Jargon Buster 3G / 4G: 3rd & 4th Generation mobile networks ADAS: Advanced Driver Assistance Systems ATOP: Automotive On-board Platform FOTA / OTA: (Firmware) Over The Air GLONASS: (Russian) Global Navigation Satellite System GNSS: Global Navigation Satellite System GPS: Global Positioning System LTE: Long Term Evolution (to 4G) V2X: Vehicle-toInfrastructure

Telit is an established supplier of automotivegrade modules, but given the size of the market and its potential, Telit decided that a dedicated business unit would allow the company to better address all those opportunities. This focused approach would also facilitate the execution of our strategy, which is to become the market leader in the automotive segment by 2015. The acquisition of ATOP should therefore be seen as a significant step towards the realisation of that objective as well as another extension of our ONE STOP. ONE SHOP. simplification model – with this addition representing simplification for our Automotive OEM customers. M2M Now: There is much talk about the vulnerability of connected cars to cyber attacks. What can the M2M industry do to alleviate this concern? OC: There is a growing awareness about the threat of cyber attacks and their impact on the safety of the occupants, especially when we get vehicle-to-vehicle communication and autonomous driving. Manufacturers and governments are aware that vehicles are vulnerable to hacking and it is particularly true for cars that are connected to the internet. There haven’t been any reports of cars being hacked, but researchers have proved during live road tests that these wireless attacks can work. Various security initiatives are addressing this issue. At Mobile World Congress we presented m2mAIR Shield, which is a concept service that will be launched later this year. The Shield runs in the module and is able to detect when a device is under attack. It monitors the traffic, either SMS or

data, and allows recognised traffic to go through. The Shield also monitors the cellular environment and detects threats. A security policy chooses whether to block the suspicious communication. For example, when a fake cell is identified, all traffic is blocked: it puts the device on lockdown. The Shield identifies the event, logs it, manages a policy around it and sends an alert to the m2mAIR Shield backend server as soon as a clean connection can be established. The report is visualised on the m2mAIR Shield administrator and end customers’ dashboard, informing them about the attack and the action taken. This indicates that Telit is doing more than alleviating the market’s concern about cyber attacks. By embedding security software into our 910module family we will stifle the attack at its source. M2M Now: How will software evolution instead of customised M2M hardware affect telematic solutions? Will robust hardware platforms have the required baseline functionality, with customisation coming though FOTA and OTA? OC: All our modules, as well as the backend services, can be updated over the air. In addition application firmware outside the module can be updated by our solution. This is not a new concept but it will be employed more and more in future: in fact, it’s the only way to go. In addition, we pioneered the ability to programme modules in order to run all or part of the application on the device. The importance of embedding and running software applications on M2M modules led to the introduction of modules that support an innovative feature called Easy Script. This allows customers to run their applications on the Telit modules and to write the app in Python. Easy Script is a complete software platform. No additional investment in hardware and license fees is needed. Embedded hardware has to stay in place for the lifetime of the vehicle, which means that it has to employ all the functionality needed for all foreseeable solutions and that is exactly what ATOP offers. The interfaces I mentioned earlier include CAN and USB, multiple serial interprocessor buses, and A/D and D/A converters. Telit will continue to evolve the development of programmable systems on next-generation automotive platforms like ATOP, which has been designed to facilitate downloading the rest of the application logic over the air and in this way to update secure, fault hardened schemes.

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INSIGHT REPORT

AUTOMOTIVE M2M Fast forward to connected vehicles

Analyst Report â&#x20AC;&#x201C; Automotive M2M Prepared by Strategy Analytics Download your free copy here http://www.m2mnow.biz/automotive-m2m-now-insight-report/

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AUTOMOTIVE M2M

A typical OBU that incorporates the ATOP integrated component, which measures 33 x 33 x 3mm

COMPANY INSIGHT:

Automotive to be top M2M growth sector Recognising the great growth potential of automotive M2M, Telit has created a new business unit to better address connected vehicle business opportunities. Dominikus Hierl describes the reasons for the change.

Dominikus Hierl, CEO, Telit Automotive Solutions

The recent acquisition of NXP’s Automotive Onboard Platform (ATOP) expands Telit’s OEM (original equipment manufacturer) offer. The new business unit (BU), Telit Automotive Solutions, PAYD: Pay-As-You-Drive unifies the resources of the two companies and SVT: Stolen Vehicle this will result in an accelerated drive towards Tracking market leadership in this segment. ATOP is an integrated, certified component that has all the functionality needed to create standalone On-Board Units (OBUs) for road

pricing, eCall, and other certified or authenticated services and applications. On the software side there is an open, multi-application development environment based on IBM’s J9 virtual machine, which can execute JAVA code. In a nutshell, it's an impressive single-component turnkey solution having tight hardware and software integration. Easy in-car integration is enabled by a broad range of interfaces, which include CAN and USB, multiple serial inter-processor buses, A/D and

▼

M2M Now Jargon Buster

IN ASSOCIATION WITH TELIT 26

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D/A converters, and analogue in and outputs for audio signals. In addition, ATOP can be employed as a front-end to more advanced, open-service telematics platforms. These are key features, particularly for up-market brands including German premium car OEMs. Automotive is one of Telit’s key markets. We not only develop modules specifically for this industry, but the company also ensures the highest quality standards are observed from research and development (R&D) to manufacturing and logistics. To guarantee total adherence to these quality standards we have a dedicated team spanning R&D, sales and support. This dedicated team focuses on different phases of development. One group is focused on field testing and software validation. Another handles ‘Reliability Validation’; a third group offers first and second level technical support; and a fourth group has the sole responsibility of ensuring that all ‘interactions’ among different functions inside our company including R&D, purchasing, quality, test engineering, and others take place efficiently and expeditiously.

Complementary capabilities Solutions based on dedicated automotive modules will continue to be the preferred option for many vehicle manufacturers and we shall continue to develop the existing product line, for example the GE910-AUTO, HE920, LE920 and UE910-AUTO. The responsibility for these products will be moved into the new company and additional R&D resources will be assigned to future automotive products. The acquisition of ATOP should, therefore, be seen as a complementary addition to our comprehensive product portfolio.

can also access the laboratories in order to obtain additional help with technical issues and compliance testing.

A huge market with enormous potential It is hard to exaggerate the potential of vehicle telematics: over 60 million vehicles were manufactured in 2012. Take-up of telematics solutions is very low, which means that there is a huge untapped market. This situation will change and government legislation is a key motivator. There is the ERAGLONASS initiative in Russia, Contran 245 in Brazil and e-Call in Europe, which should be mandatory in most countries by 2015. These are positive developments that Telit has tracked and, as indicated earlier, we already have the requisite products. Moreover, our portfolio has been extended and expanded via the acquisition of NXP’s ATOP platform. The word ‘expanded’ was italicised to emphasise the fact that this next-generation platform enables the development of consolidated solutions. This topic was considered in the 2013 edition of our telit2market magazine. The article anticipated the emergence of low-cost but more sophisticated platforms that will allow the hardware and the related data plans to be shared with the various telematics solutions. ATOP has the requisite functionality. The open, multi-application software environment ensures interoperability and secure co-existence in systems that run multiple telematics applications in parallel. The ARM7 environment, which uses C/C++, complements the IBM J9 environment with low-level, true real-time capabilities for application integration.

Synergistic relationships

A powerful package

Telit has been active in the automotive market for several years and in that time we have acquired a vast knowledge base as well as a considerable amount of operational experience of this industry. In addition, we have the global reach as well as the various support services needed to facilitate the marketing and deployment of ATOP-centric solutions.

The ATOP platform packs all the functionality needed to create standalone On-Board Units. Key features include: GNSS (GPS) and GSM / GPRS communication; device and vehicle connectivity via CAN, USB, and NFC; transaction security and authentication mechanisms; secure, over-the-air software and applications upgrades; and multi-service capable and multi-App concept.

Back in 2009 Telit created dedicated sales and support teams that could function locally and at the same time be managed on a regional and global basis by senior Telit specialists. I was responsible for automotive. Telit Automotive Solutions employs the same model. It operates in a global ecosystem comprising a direct sales force that operates out of 35 offices around the world plus a distribution channel that has 60 specialists in more than 80 countries. These value-added distributors have detailed local knowledge and expertise. Everything is aggregated. In this way Telit is not only close to its customers, it becomes an integral part of their marketing operation.

Key benefits include: single-component, turnkey telematics solution with reference design; optimised cost, form-factor, incar connectivity, and power consumption; three-processor architecture for compliance with automotive standards, GSM, security, and service certifications; open, flexible framework based on standard software; built-in, banking-grade security functions and ultra-small footprint.

Research and development Market leadership cannot be realised without making significant investments, but more is needed in today’s ultracompetitive market. Application Engineers are also involved. Different technical representatives are assigned to ensure that projects are completed quickly, efficiently, and successfully with the shortest time-to-market. This is also the group within Telit serving as the interface between customers and R&D. They co-ordinate activities with hardware and software engineers to speed up the integration process, and customers

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There is a lot to like about this package and it is set to play a pivotal role in the open, multi-service telematics solutions that will provide us with applications such as eCall, SVT, PAYD, and fleet management. ATOP can also function as an in-car client for smart grid based e-cars and pooled car applications.

Conclusions Telit is an established supplier of automotive-grade modules, but given the size of the market and its potential, Telit decided that a dedicated business unit would allow the company to better address all those opportunities. This focused approach would also facilitate the execution of our strategy, which is to become the market leader in the automotive segment by 2015. The acquisition of ATOP should therefore be seen as a significant step towards the realisation of that objective.

AUTOMOTIVE M2M

CONNECTED CARS AT MWC 2014:

Making M2M a servant not a spy Up to 15,000 delegates at Mobile World Congress visited the GSMA’s largest ever Connected City in 2014, up from 8,000 delegates in 2013. Visitor growth even out-stripped expansion of the Congress as a whole – itself up to 75,000 visitors from 72,000 last year. As Jeremy Cowan found, connected vehicles were again of particular interest.

Carlos Morales, Telefonica

Jeff Chu, ARM

On the subject of connected cars, Parker pointed to the transfer to automotive of technologies from seemingly unrelated industries. There was a demonstration by a team of basketball players wearing washable sensors sewn into their shirt collars to monitor their heart rates and stress levels. “It starts with professionals,” said Parker, “then develops for enthusiasts’ smartphones, but the same monitoring technology can be put in a steering wheel to collect data on drivers’ wellbeing.” In-vehicle connectivity in the much-praised Tesla Model S electric car is provided by Telefonica Digital. During a guided tour of its offering, the

Carlos Morales Paulin, Telefonica Digital’s Global M2M, Cloud and Apps director said: “The Tesla that a customer buys is different from their car in three to four months’ time. For example, until recently Tesla’s automatic gearboxes had no ‘creep’ mode.” If you left them in ‘Drive’ they were stationary, unlike traditional automatic gearboxes which creep forwards unless the driver applied the brake. Tesla vehicles have now been automatically updated over-the-air (OTA), and the cars alerted their drivers to this new function. Other OTA upgrades have included satellite navigation in additional languages and an Rdio media browser. A new version is released every two months. The connectivity package is bundled with the car, and four years of Telefonica service is included in the vehicle price. “We’re in 23 countries directly today and more through our connection partners. Our devices will soon connect to any car made since 2004, plugging into the OBD2 port in your car (Telefonica Digital’s new service launches in Germany in Q2 2014. Ed), and our app will give you all the data on your car when you leave it, including location. You can set up ‘geofencing’ ▼

The GSMA’s Andrew Parker, project marketing director for Connected Living, was able to quantify the spread of connected devices. He said that a Machina Research study commissioned by the GSMA showed there were 195 million connected M2M devices worldwide in 2013. This total, he said, would rise to 250 million in 2014, a compound annual growth rate of 38%. Questioned by M2M Now on revenues, he said the GSMA will add ARPUs (average revenues per user) to their study next year.

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“IoT can be scary for people when they think that there will be sensors monitoring them. So privacy issues are huge.” Jeff Chu, ARM with an alert if your car leaves the area, and it gives you full diagnosis of your car’s health, or data on your trips,” said Paulin. “This is the first M2M business-to-consumer (B2C) product from Telefonica. We started with a pure connectivity offer, then we built platforms where clients can manage their own devices in real time, changing tariff, and also offering a data analysis package. We call it Horizontal Play, and it doesn’t matter which industry we’re talking about. We’re capturing end-to-end services. Connectivity has a low ARPU, but with in-car video downloads the ARPU will go up. But it also impacts on our network.” The automotive market is being spurred on by numerous applications; emergency calls, navigation, entertainment, driver communications, and dealer support for the vehicle. A key technology here is MirrorLink. Japanese mobile network operators are among the first to launch MirrorLink-certified handsets for fast, secure in-car smartphone access. RealVNC's MirrorLink™ certified technology, VNC® Automotive, has been used by Japanese IT equipment manufacturer, Fujitsu, to launch its first MirrorLink-certified Android mobile devices. On its stand, RealVNC demonstrated how multiple devices could be connected – any device to any device – in a single vehicle, which MirrorLink itself does not do. This Sony phone uses ML1.0 based on RealVNC and Sony licenses it from us. “On the car’s built-in screen I can play movies,” said Tom Blackie, VP Mobile of RealVNC, “or using the touch screen bring up maps. I can also send different videos to both rear screens. It’s full frame rate, or they can play games with no latency.

Crowd-sourced data

Product Management Automotive & M2M/IoE. We’ve modified Android to create two zones, for the driver and the back seats. The system enables navigation in the front with a directional overlay on a forward-looking video, while the kids watch a movie in the rear. How close is this system to market? Aside from Qualcomm and QNX’s development speed, said Duggal, “different phone manufacturers react at different speeds. It could be in vehicles in early 2016; we’re helping auto makers to bring down development cycles to five years. Automotive is good business already, it’s not just projects.” The automotive sector is already good business for RacoWireless. John Horn, its president told M2M Now that is company has been chosen to support the new line-up of 4G LTE connected vehicles in the Audi connect® programme. Audi and AT&T are to provide the first-to-market 4G LTE connected car in the US with the new Audi A3, coming to market this spring. A global provider of wireless data solutions to the M2M industry, RacoWireless will provide connectivity management, including 24/7/365 call centre support. “The momentum that we have been able to build with RacoWireless as a partner has been tremendous,” said Anupam Malhotra, senior manager, Connected Vehicles, Audi of America. The new Audi A3 models will feature an advanced platform and suite of services allowing motorists and passengers access to real-time information, voice navigation, and WiFi connectivity for up to eight devices using 4G LTE technology.

“We’re unique in being able to connect multiple phones or streaming three or four videos simultaneously. And if a driver warning light comes on it connects automatically through the cloud to the dealership, who may see what the problem is. Or crowd-sourced data of ice being experienced by cars ahead can be sent to other users of that app,” Blackie explained.

“We are thrilled to continue our relationship with Audi of America,” said Horn. “Working with AT&T to bring this solution to market will only augment Audi’s position as the clear leader in the connected car space.”

Fujitsu is the latest mobile phone vendor to utilise VNC Automotive technology to offer its mobile network operator customers car-ready technology. Six MirrorLink-certified handsets are now available on major Japanese mobile networks. "The release of these devices heralds the start of a flood of MirrorLink certified, production-ready technology, particularly in Asia and the Far East," said Blackie.

While many in the automotive M2M space are rightly concerned with connectivity and services, one person M2M Now spoke to is looking slightly further down the road, at managing the data generated in these services and ensuring user privacy. Jeff Chu, ARM’s director of Segment Marketing, Client Computing, said: “IoT can be scary for people when they think that there will be sensors measuring and monitoring them. So privacy issues are huge – it’s about who can access the data.

VNC Automotive is said to allow safe and secure control of a mobile device from a vehicle head unit or infotainment system. This gives drivers in-car access to their smartphone content, including GPS navigation, music libraries and internet radio. These mobile devices can be directly and safely controlled from a vehicle’s touch screen infotainment system, from dashboard control buttons, steering wheel-mounted controls, or even by voice command. RealVNC licenses out the technology and then earns a longterm royalty per head unit. They supply it as a software development kit to in-car head unit makers such as Clarion, Denzo, HTC, Sony, Panasonic and now Fujitsu. The company expects up to 3 million vehicles globally to use their technology in 2014, with 5-10 million users in 2015. Qualcomm is partnering with QNX for GNSS navigation and an LTE modem supported by its Snapdragon 602A applications processor. From switch-on the system takes 0.5 seconds to enable, full audio is in 2 seconds and the full bootup for gaming and movies in the rear takes 8 seconds. “We’re looking to get that lower,” said Nakul Duggal, Qualcomm’s VP,

M2M Now

‘M2M can be scary’

“Take UBI (usage-based insurance), for example, the data can lower your insurance premium. But the same data can be passed to the city to manage traffic flows, or the authorities can know where you’ve been. We need, as an industry, not to over-regulate but to put guidelines around how data should be used. A step beyond that is defining how a service can access data so that it’s common to all data providers for maximum value,” he added. “At ARM we want to be open and let everyone play. We’ve been working with the US Federal Trade Commission to set data privacy rules, and in Brussels (at the EU) it’s happening too. We need to define (usage) so that we can secure people’s data. Here at MWC 2014 we have a demo on how we access data over a 3G network using protocols based on Open Standards to drive packet sizes down. You don’t want a $100 board at every node,” said Chu. For more on connected vehicles see our Insight Report on Automotive M2M (pages 15-35).

AUTOMOTIVE M2M

COMPANY INSIGHT:

Driverless cars are among the possibilities for the car of the future

Driving the connected car to a world of new mobility Connected car technology is revolutionising the automotive industry and transforming our wireless lifestyles into a world of new mobility. From four-wheeled mobile offices to driverless cars and even windshields with integrated Google Glass, the possibilities to enhance transportation and improve our way of life are endless.

The author is Lars Thyroff, VP Automotive Segment, Global Head of Automotive Line of Business at Gemalto M2M

The Magic Triangle: Zero emissions, zero fatalities and enhanced driving pleasure! Global automakers are focused on eliminating emissions and reducing crash fatalities while enhancing driving pleasure. Sometimes referred to as the ‘magic triangle’ of automotive innovation, carmakers carefully consider three core topics when making design and engineering updates: • Ecology – reducing carbon emissions that can negatively impact the environment • Safety – producing safer vehicles that protect against crash fatalities • Emotion – providing drivers with a 1

sophisticated vehicle that is fun to drive To meet the demands of today’s savvy car buyers as well as regulatory benchmarks for safety and emission control, automakers continuously strive to reach ever higher goals in these three critical areas. For instance, manufacturers are constantly utilising stronger and more lightweight components to increase passenger safety and vehicle durability with decreased weight to improve fuel efficiency and battery consumption economy. In addition, secure embedded connectivity is at the heart of a new breed of connected car applications that are helping carmakers meet their ambitious goals of enhancing the emotional connection to the vehicle while achieving zero emissions and zero fatalities.

A valued partner in automotive connectivity As the global leader in digital security and automotive M2M technology, Gemalto has long been a valued partner to tier one car manufacturers and OEMs, service providers, governments as well as road and transportation operators. In addition, the company’s participation in creating industry standards ▼

Industry experts and analysts agree that the industry’s growth potential is enormous with estimates reaching as high as 90% of all vehicles being connected by 20201. Along with the exciting opportunity to expand our mobility comes new challenges, including security concerns and the risk of increased distracted driving that have some people wondering, “Why connect vehicles at all?” A deeper delve into motivators in the automotive industry provides some answers.

Telefonica, https://m2m.telefonica.com/m2m-media/m2m-downloads/detail/doc_details/530-connected-car-report-2013

IN ASSOCIATION WITH GEMALTO 30

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and its membership in standardisation bodies including ETSI (the European Telecommunications Standards Institute), VDA (Germany’s leading European automotive standards organisation), ERTICO (Europe's Intelligent Transportation System (ITS) organisation) and many more, delivers unrivalled insight and marketplace intelligence to get connected car projects off the ground. Gemalto’s market-proven technology provides a ‘virtuous circle’ of competence around next generation connected vehicle applications, delivering innovative solutions across the entire automotive M2M ecosystem. Carmakers, MNOs and integrators leverage Gemalto’s portfolio of award-winning Cinterion® Automotive M2M Modules to provide a variety of global connectivity solutions while embedded auto-grade MIM and related services authenticate, encrypt and safeguard connectivity and communications. Gemalto’s array of solutions, platforms and services completes this circle of positive feedback and comprises secure authentication technology, security consulting, payment systems, trusted infrastructure and On-Demand Provisioning services help to enable reliable connectivity for automotive applications and the connected mobility world of tomorrow.

Infotainment Infotainment solutions, such as the Gemalto-powered, first to market embedded LTE Audi connect infotainment solution introduced last year, have captured the public’s imagination and attention for their ability to add convenience and improved communications to our daily lives. But 3D navigation, WiFi hotspot capabilities and mobile movie screening are only the tip of the iceberg in terms of the value of connected car technology.

Intelligent powertrain and navigation Telematics applications that manage engine operations and service updates are not new to the automotive industry. However, next generation connected powertrain solutions take this technology a step further by leveraging data in real time from a multitude of embedded sensors to automatically control and optimise engine efficiency, energy usage and fuel economy while reducing CO2 emissions. Advanced connected car applications combine data from the intelligent powertrain, navigation systems, car cameras, smart road applications and even other cars through upcoming carto-car (C2C) and vehicle-to-x (V2X) communication to alert drivers in advance when hazardous road conditions or traffic congestion is expected. Gemalto-enabled systems can automatically provide optimised trip management to avoid hazards and delays; and in some cases, they may even suggest public transportation as the best option.

Advanced driver assistance services and autonomous driving Recent tradeshows put a spotlight on futuristic self-driving and self-parking vehicles leaving some people feeling skeptical about turning over control to a machine. In reality, these solutions are used more like an advanced cruise control system versus a replacement for a driver. For instance, when traffic jams are unavoidable, drivers won’t have to endure hours of stressful stop and go traffic because autonomous driving systems will take over and navigate through the worst of it. The solutions improve the driving experience as well as

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fuel economy and they can help navigate through potential crash scenarios and even improve outcomes when accidents occur.

Car sharing and fleet management: an integral part of the intermodal transportation of the future Flexible car sharing services are growing in popularity, especially in urban areas where owning your own vehicle provides more obstacles than solutions. In a next generation car sharing scenario, a person looking for a car initiates the process by opening a smartphone app and requesting a vehicle. The driver selects a car from a list provided and immediately receives walking or public transportation directions to the vehicle. As he makes his way, he receives a text message indicating that a digital car key has been securely sent to his phone. When he arrives at the vehicle, he simply taps the smartphone near the windshield to authenticate identity and open the doors. Another tap authorises ignition. In route to his destination, the driver receives an audio alert that a recent accident has caused a road closure. The smart car recommends an adjusted route, which includes taking public transportation to an alternate shared vehicle parked on the other side of town. The driver accepts the new route and when leaving the vehicle, the smart key is disabled. He then receives a text message and an electronic ticket code for his train trip. Simultaneously, the smart car solution sends car sharing data including distance travelled, driver ID and billing information to the car sharing enterprise. Gemalto technology can simplify and enhance the customer experience all along the way and, most importantly, enable trust.

Facilitating a network of trusted partners New mobility services, from car sharing to autonomous driving solutions, are providing flexibility to meet individual transportation needs while overcoming the challenges presented by quick growing urban environments and environmental pressures. These systems require close collaboration from a wide range of diverse players including public and private transportation providers, car makers and car sharing service providers. This complex ecosystem can only operate successfully within a network of trusted partners that can deliver a seamless experience for the end user. Gemalto’s Trusted Service Management platform and Near Field Communications (NFC) technology provides the elements required to integrate all the partners and components together for a seamlessly connected whole experience. Trusted Service Manager provides a secure digital environment where relevant data from all ecosystem players is handled securely and stored in a secure element, e.g. on the end user’s mobile phone. Today, we are only scratching the surface of the power of the connected car revolution to improve our way of living, expand our safety and security, enhance our driving experience, and provide new revenue streams. Gemalto’s wide range of connectivity solutions and services supports a trusted network of partners that does more than just enable connected car technology – it delivers increased safety, improved ecological performance and a more enjoyable driving experience in the smart mobility world of tomorrow.

BIG DATA

Driving toward the near future with Big Data The entire ecosystem of the automobile industry – from manufacturers to drivers, including dealers, service centres and mobile content providers – are benefiting from big data. Here, Yves de Montcheuil of Talend invites us to go for a ride toward the (very) near future.

The author is Yves de Montcheuil, VP of Marketing at Talend, specialists in open source integration. Yves holds a master’s degree in electrical engineering and computer science and has 20 years of experience in software product management, product marketing and corporate marketing. @ydemontcheuil

There are several goals to these programmes: usage analysis, fuel efficiency and carbon emissions, safety, vehicle performance and maintenance management. These programmes are shaping the new reality of the automobile of the 21st century, as a new car buyer (let’s call him William), will experience in his day-to-day life – maybe as soon as tomorrow.

New car search William just decided to get a new car. He begins his search on the web, chatting with friends on social networks, reading comparisons and reviews published online by the trade press and clicking on targeted banner ads. Before long, his Inbox begins to fill with messages inviting him to test out the latest models from different manufacturers.

At the dealer As William pulls into his chosen dealership, he gets a text message offering a promotional discount on the model that caught his attention the day before. He has barely set a foot outside

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Whether in the design and construction processes, in use or maintenance, big data has crept into the lifecycle of the automobile. Several manufacturers, including Ford and Volvo, have launched large scale analytical programmes to leverage the millions of data points generated by multiple sensors now integrated in their vehicles.

May 2014

BIG DATA William’s driving preferences can be sent to the cloud and used in loan or rental vehicles

his car when a salesman comes to greet him: not only does he already know that William is coming in today, he knows what model he is interested in and has several offers lined up for him. William doesn’t need long to make his decision. Along the way, let’s note that this model was designed based on user feedback, data collected by the sensors of previous generation vehicles, as well as feedback from dealers (What is popular or unappealing? What is needed and expected?). Changing patterns of use were also taken into account and the findings were refined based on the analysis of several different types of data, including performance data from Grand Prix races and test benches published by trade journals. William is particularly interested by the latest navigation system included in the car, which not only tracks the travel time of other motorists to avoid traffic jams, but also to avoid accident-prone areas, and optimise fuel consumption (and therefore carbon emissions). William’s decision is further helped by the custom financing terms, including insurance, offered by the dealer.

On delivery Once the vehicle is delivered, William’s first impulse is to programme his driver preferences: adjustment and programming of the mirrors, height of the seat and steering wheel, temperature and favourite radio stations. This data is transmitted to the cloud instantly and can be used in other vehicles (loan or rental). He also configures his mailbox (to check messages in voice mode) and his favourite routes on the navigation system. This also enables him to locate the cheapest petrol station on his route, based on his destination and actual fuel efficiency.

In the car William decides to take a road-trip, but at times it is a bit long and monotonous. He did not sleep much the night before. His eyes begin to close intermittently and as time goes on he becomes careless in maintaining safe distances from the vehicles ahead. An alarm sounds and a friendly voice advises him to take a break. His driving behaviour is being analysed in real time and compared with the average behaviour of motorists. Eyes that close, a body that is slouching in the seat, and swaying or rocking movements of the head are all warning signs of drowsiness. William decides to stop for a coffee. If he had not, the car could replace him in the event of imminent danger, or simply stop at the next parking lot or rest stop. Leafing through the preventive maintenance manual of his vehicle, William learns that maintenance, previously based on the distance travelled, is now personalised based on the information collected by multiple sensors (brake wear and tear, engine speed, fluid pressures, etc.). A detailed analysis of this data (compared to data from other drivers and the

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description of breakdowns or repairs handled by dealers examed by the manufacturer’s data scientists) establishes the best timing for maintenance. As the car is connected, all this data is sent to the cloud to feed statistical models and send alerts to the driver if a potential anomaly is detected. In addition, data links now allow vehicles to communicate with each other to detect any possible problems in advance (safe driving distance, car breakdown around a bend, traffic jam ahead, etc.). These are some examples of the value-added benefits William enjoys due to data analysis. By studying the driving style and taking into account the entire lifecycle of the vehicle, manufacturers are able to send useful information that will improve the driving experience. In turn, they can maintain privileged relationships with the customer that foster brand loyalty.

Future services Many other services are currently under development: Ultrafast repairs and maintenance, biometric door lock control, tracking in the event of theft (and immobilisation of the vehicle), sending targeted and location-based promotional messages via the radio, weather and natural disaster alerts, adaptation of insurance rates based on driver behaviour, autopilot, custom music programmes, tour guides, mobile payment, and so on. Beyond their business core, manufacturers today are forming a true network of service providers, for which data is the fuel. Aside from the goal of preserving their sales and margins, some car manufacturers are completely reinventing their business thanks to big data. Each and every customer will benefit from increased security, improved maintenance, enhanced driving comfort and ultimately will enjoy an innovative and ground-breaking user experience.

BIG DATA

COMPANY INSIGHT:

Welcome the global connected car with a networkagnostic SIM Michel Zwijnenberg, ASPIDER’s vice-president M2M

Michel Zwijnenberg, ASPIDER’s vice-president M2M, talks to Saverio Romeo, principal analyst at Beecham Research about the future of connected cars.

ASPIDER M2M believes that this is a radical move that will enable new business models and innovation in the Internet of Things (IoT). ASPIDER M2M also believes that the connected car market and automatic meter reading market will be the first segments to benefit from this change. M2M Now asked Saverio Romeo of Beecham Research to talk to Michel Zwijnenberg, ASPIDER vice-president M2M, about the evolution of the connected car market, the impact of the new Dutch regulation, and the role of ASPIDER M2M in the market.

Saverio Romeo: Can you provide an overview on ASPIDER M2M and its offering? Michel Zwijnenberg: Since 1st April, 2014, ASPIDER M2M is part of Wyless. Before that date ASPIDER M2M was part of ASPIDER Solutions. ASPIDER Solutions, with headquarters in The Netherlands, is a well known international MVNE. ASPIDER M2M operates 550,000 active M2M SIMs with local partnerships with large international mobile operators. ASPIDER M2M is legally considered a mobile network operator, in fact, the company has its own MNC, a core mobile network and OSS/BSS system. The company also has roaming agreements with 400 operators in almost all the countries in the world. All this gives ASPIDER M2M a strong degree of flexibility and enables the Dutch company to customise network-agnostic solutions based on the customer needs. The combination of the ASPIDER roaming SIM and Wyless Local SIMS in 19 countries has further increased the global coverage and the flexibility of the offer. ▼

The author is Saverio Romeo of Beecham Research

The Netherlands is among the most advanced and dynamic M2M markets globally. Recently, the Dutch telecommunications regulatory authorities issued a directive that will animate the debate in the M2M and the IoT industry. Two shared MNCs for private usage are now available in the Netherlands. Therefore, groups of companies and organisations can use those MNCs independently from mobile network operators.

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March 2014

BIG DATA

Key ASPIDER M2M customers are in control of their own connectivity through solutions such as Multi IMSI, owned MNC, or subscription management. Romeo: Which are the most active sectors for ASPIDER? Zwijnenberg: Our customer base is diverse in size and vertical areas of operations. Large Dutch multinational companies use our solutions. Philips is one of those using our solution for lighting solutions, and Stedin for smart metering projects. We collaborate with OEMs and international companies. At the end of 2013, we also launched a solution specifically tailored for small and medium enterprises. In terms of sectors, we have several projects in energy, security, retail, healthcare and transport. We strongly believe that transport, and in particular, connected cars is an area with great opportunities. Romeo: What is your opinion of the current status of the connected car market? Zwijnenberg: Innovative legislation such as the eCall, and the increasing diffusion of broadband technologies and digital culture among drivers, have opened the doors of cars to the M2M/IoT industry. Today, there is a new range of service and applications opportunities such as remote maintenance, preventive call-back to the dealer, usage based insurance, incar internet services and information and analytics for car manufacturers to improve their products. In order to fully exploit the benefits of all these, the car manufacturers need to be in control and this control has to be at multi-country level because of production locations, and the user using the car in multiple countries. Romeo: How do car manufacturers take that control? Zwijnenberg: ASPIDER M2M believes that car manufacturers need to: • control the gateway into the car, similarly with the residential gateway into smart home environments; • bill the customer or user; • be able to set which party can offer which services through this gateway; • be in control of the security, uptime and pricing of the connectivity; • be in control of which operator is used and when; • be in control of the SIM and its specification and • be able to control the SIM supply chain. This ensemble of activities can be quite complex for car manufacturers. However, being in control of the connectivity is a strong starting point. Romeo: Which is the best approach for car manufacturers for being in control of the connectivity? Zwijnenberg: For a car manufacturer, using an operator SIM with a bundle is not the right approach. An alternative to that is subscription management. This solution has its value, but it is not scalable for mass deployments. Instead, ASPIDER M2M believes that having its own MNC is the right approach for gaining full control on the connectivity and, consequently, a strong degree of flexibility.

ASPIDER M2M believes that car manufacturers should control the SIM and its speciﬁcation

Romeo: The newly issued Dutch regulation could be a good answer. What do you think? Zwijnenberg: We believe that making an MNC code available for private use is a significant step in the right direction. ASPIDER M2M proposes to fully exploit the new Dutch regulation. A possible approach could look like: • A neutral party hosts the MNC that has been made available for private company use. • Private companies can become members (e.g. the whole set-up could be in a charity). • Participating companies get the ownership of a sub-range of this MNC. However, the SIM has an application that enables them to move to their own MNC, if they are able to have one in the future. • Each private company gets their own HLR. • The neutral host proxies the HLR messaging to the private company HLR. • Close collaboration with some existing roaming hubs would be required. Romeo: How can ASPIDER M2M benefit from the new regulation? Zwijnenberg: ASPIDER M2M is perfectly in line with the new Dutch regulation. We want to give to our customers control of their machine-to-machine connectivity and we already have experience of that in the utility and public lighting sector. Generally, we believe that we are very well suited to exploit the Dutch regulation regarding the assignments of MNCs, but also the recently approved regulations at EU level on roaming charges and net neutrality.

“We want to give to our customers control of their M2M connectivity.” Michel Zwijnenberg, ASPIDER

M2M Now

OPINION SPONSORED COLUMN

CIOs and CMOs get intimate At a recent international conference for Global CMOs, much was debated about the increasing interdependence between chief marketing and information officers (CMOs and CIOs). Nobody was ready to say that the two functions would merge, or hazard a guess at which would survive if they did merge, but the one thing all agreed on was that these functions will continue raising their intimacy levels in several dimensions with the rapid rise of big data analysis and marketing automation for the enterprise.

The author is Alexander Bufalino, chief marketing officer, Telit Wireless Solutions

The C-Suite of the new enterprise is abuzz with new management possibilities afforded by big data. CMOs can now stand in boardrooms the world over and show results from campaigns updating in real time on the screen as the presentation unfolds. Similarly, they can demonstrate real and present threats from competitors and play ‘what if’ scenarios with senior management, tapping into real-time data and analysis tools not available as little as a year ago.

data elements to repositories of the massive M2M cloud building the Internet of Things (IoT).

The playbook for the new C-Suite is now rewritten in real time. And with every iteration more variables are taken into account both from structured and unstructured data. At the edge, there is a network of devices charged with gathering, pre-processing, and delivering different

The race is on for system integrators and original equipment manufacturers (OEMs) to connect everything to the cloud. Telit’s ONE STOP. ONE SHOP. is and will remain the model delivery system in this race, simplifying the connection between the edge and the IoT.

The real business value of the IoT is quickly becoming tangible and measurable. Many of the product and service brands we are buying today come from companies who confessed to relying irreversibly on big data and marketing automation and have, in fact, already built these new processes into their management procedures.

AUTOMOTIVE M2M

“These are the two areas in the auto industry that have not changed in 100 years.” Steve Millstein, Aeris

IN ASSOCIATION WITH AERIS COMMUNICATIONS M2M Now

AUTOMOTIVE M2M

Aeris’ automotive M2M team says it is tackling ‘areas nobody wants to confront’ According to Aeris Communications’ Steve Millstein there are automotive M2M issues that ‘nobody wants to confront’, nobody except Aeris it seems. Jeremy Cowan gets the lowdown. M2M Now: Steve, how successful is the connected auto segment today? Is it delivering value to all of the constituents? Steve Millstein, Aeris: No, the success is marginal and the present value it delivers to the automobile industry is virtually non-existent. I have been working at Aeris for the past couple of years developing our connected vehicle strategy and implementation in areas I call the ‘dirty little secrets’, areas that everybody in the industry knows, but nobody wants to confront. I mean, look at it. Car companies put hardware in cars and after the free period, let’s say that’s one year, the renewal rates are somewhere between single digits and 30% if they’re lucky. That clearly shows the consumers are voting with their dollars and the business model doesn’t make sense, either to drivers, or to the car companies. M2M Now: What is it about the offering that doesn’t make sense? SM: To illustrate it, a vending machine for Coca-Cola® may be connected but it’s not connected to become a profit centre, it’s connected to do what they do better. To manage the temperature of the sodas in the machine, and so that the types of sodas are what the consumers expect. This even benefits on the expense side. Perhaps you can repair the machine over-the-air, without sending a technician out, which is cheaper and faster.

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We are bringing that same approach to the connected vehicle space. In our business model, we have eliminated the need for consumer subscriptions. We can keep a car ‘lighted’ from the time it is built, even

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What that means is that now the car companies are able to unleash the true value of vehicle connectivity, just as that Coca-Cola® machine did. That is, fundamentally changing the way you sell and you service cars. These are the two areas in the auto industry that have not changed in a hundred years. They changed the composites in the car, the manufacturing, the electronics, but they haven’t changed the way they sell and service. You still have to bring a car back into the dealership when you shouldn’t have to. And the industry still don’t know who buys their cars; not only the first owner, but the second owner. We change all that. A car staying lighted forever gives them the ability to stay in touch with their product and with their consumer, for the life of the vehicle.

Our platform allows for that uniformity globally. And if Acura wants to know the performance of an Acura anywhere in the world, they can just put some parameters in like, ‘Give me a 2012 Acura, one that is between 10,000 and 15,000 miles and show me all of them that have engine control failures.’ That’s something GM could have used in their recent problems. We have the software on the device, we have our purposebuilt network, our global services platform, and then we have our cloud technology. It does two things. It allows for the applications for automotive to be built, or in whatever vertical. For example, we have built and are operating the ability for a car to connect directly to 112 – as required in Europe – or in our case to 911 without going through a costly third party call centre. Those applications along with the remote services, the door unlock, the theft recovery, they all reside and were built costeffectively and rapidly on our cloud technology.

M2M Now: What experience does Aeris bring to the connected auto space?

M2M Now: Are there any other trends that might change the connected auto landscape?

SM: We have an engineering team that looks at problems creatively and develops solutions. The car companies that we provide services to today represent 25% of the car sales in North America; including brands like Honda, Acura, and Hyundai to name a few.

SM: Not many. The real interest in vehicle connectivity – except for BMW who I think understands it – comes from government mandates; the eCall initiative in Europe; a similar one in Russia; stolen vehicle requirements in Brazil. Even in North America, where it’s not a government mandate, there’s a belief that (auto makers) have to have it to be competitive.

We have four elements of technology that make machines work better. Those are some software that goes into the device, to make it programmable and mitigates the risk that it will be obsolete. You can’t have devices that need people going to them all to time. If that machine is part of the power grid out in the hinterland you can’t send somebody out there. If it’s a car, you don’t want to recall it and replace the hardware. So part of our technology starts with the device itself. Then we combine that device with our network which is made for machines. We ‘lease spectrum’ from MNOs. We connect to their towers and base stations and then it’s our network. It’s built for machines under that same theory that a machine has to get an SMS message at noon, if it’s expecting that. The service has to be the best available. It has to be more secure, as ours is, because it’s built just for machines, so that they can’t talk to each other. Machines just talk to who they’re supposed to. The third thing we add is our global services platform that we use to manage devices. Carriers struggle with that in their networks today, because they are focused on consumer handsets. Aeris GSP, our global services platform allows you to connect with your devices or your cars wherever they are in the world. Turn them on or off, irrespective of what country they’re in. We provide services in 190 countries. Think about it, if a car company had to negotiate with all those carriers, then have a different way of activating each car, a different way of reporting and billing.

Nobody says that the consumers are demanding it. Say, for arguments sake, that of all the vehicles that are equipped, 25% stay lighted after the free period. Of that 25%, no more than 20% will subscribe to the back seat services, the infotainment, the streaming audio, the things that car companies are spending a lot of money on. So only 5% of consumers, best case, are buying the infotainment services. They’re voting with their dollar. I don’t see a lot of plans that are really changing the face of vehicle connectivity. We will. M2M Now: When consumers are making this choice, how should they be enticed? SM: We believe it should be turned from revenue generating to a way of doing business, going back to the Coke® machine. I believe that the car companies should keep their cars lighted forever; no subscription from the driver, for the diagnostic data about the car. That database is used in their ecosystem and it will have a big impact. It’s knowledge they’ve never had before. The front seat services – the safety and security, the door unlock, the theft recovery – could be priced on a pay per use or with our technology and business model, they could be provided at no additional charge. Services should just be made available because the consumer gave you US$30,000 for a car. The car should alert the appropriate authorities when there has been an accident. I don’t believe there should be a charge for that. In our business model it comes free. The back seat services are part of the consumer’s lifestyle and

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before it leaves the factory, to the time it is crushed, with no fixed monthly costs to the OEM, the automobile manufacturer, or to the consumer.

IN ASSOCIATION WITH AERIS COMMUNICATIONS M2M Now

AUTOMOTIVE M2M

Steve Millstein is responsible for directing and managing the Aeris automotive practice. He led ATX Group from 1996 until its acquisition by Cross Country Automotive Services in 2008. Steve has also held numerous positions at Southwestern Bell and AT&T, including vicepresident of their wireless subsidiary. He holds a Bachelor of Arts and Sciences degree in political science from the University of Kansas and a J.D. from Washburn University.

the job of the car companies is to seamlessly and at no cost, use the smartphone that the driver brought into the car. If you wanted to have a concierge service you could add one on top, at a subscription of so much per year. But we have Yelp on our phone and apps that allow us to find that nearby restaurant.

world. That may not be possible today; it will be soon. But even when you have a global piece of hardware, you still need a services platform like ours, or you’re activating it differently in every country. Your reports are different, your billing is different. By definition that means the big boys are going to have a competitive advantage.

People may say, ‘Well wait a minute, how do I make money doing that?’ One, we have a way you can make money, but even if consumers don’t buy everything we’re saying, when we modelled it you lose less money doing what I’ve just said than they’re losing today.

M2M Now: And what about the rest?

M2M Now: Is your business model entirely focused on the car companies? SM: My group is focused on the automotive side, but the greater Aeris offering is for horizontal M2M services. We just work with a device that is embedded in the car, to deliver services to the car companies and the drivers. M2M Now: Industry hype seems to be focusing on the value being in delivering entertainment. SM: There are industry players that are hyping that, and it ignores the market realities. In my unscientific survey of my three children they’ve said, “No, I don’t have that (entertainment package) on my car. I want to use the speakers to play my own music, but I don’t need somebody telling me where to go eat.” The closest company to our business model is BMW. In North America at least, BMW keeps the car lighted for 10 years, and they are connecting for getting data out. They do provide a suite of services to the consumers for that period of time. The car companies need to build back office infrastructure to use this data. It’s kind of a hen and an egg; the car companies don’t have systems and applications waiting to connect to the cars, to make value and use of this data, because they’ve never had the data. If vehicle connectivity is only available on the top brands and only 10% keep it lighted because of the subscription model, you’re not going to change the way you sell and service cars. You have to have all cars available to send that before it’s going to be worth changing. That’s the problem. M2M Now: Steve, only the largest mobile network operators are talking publicly about connected auto. Why is that? SM: Well, you have to have a global reach, as we do. The car companies are looking at it, primarily because of government mandates. Should they expand their connected vehicle strategies? Car companies would love to have a device that has one SIM card in it that works anywhere in the

SM: The rest will have to be comfortable having a car roaming permanently on their network, making money for doing nothing. The MNO in France may not be the one negotiating with the car company. But if you think about it, the car company isn’t going to want to negotiate with 190 wireless carriers – or more than that, because you want to have more than one in every market. You have to rely on somebody to do that heavy lifting for you. That French carrier is going to be happy just having cars using data on their network. That’s where they make their money anyway. You need to have a global reach. You have to understand lead times in the automotive industry. It’s much different than consumer electronics; what consumer electronics companies do in three months it takes a car company three years. The consumers will stand for re-booting a tablet, they won’t stand for re-booting their car. Consumer expectations are different. The economics are different. That’s one of the good things about Aeris. Since we were built for machines, our entire network and back office infrastructure was built for an ARPU (average revenue per user) of a couple of dollars, not a hundred dollars. Our economics are so much superior to MNOs’ because ours was built with the understanding that we’re not going to be getting $100 a month, we’re going to get $1 a month for a device. M2M Now: And how long has Aeris been in the automotive space? SM: We have been doing this for about 20 years, and in the last year we doubled the number of subscribers. We launched billing for three automotive programmes last year. We completed our automotive vertical applications, the theft recovery, the door unlock, the automatic collision notification going directly to the government’s emergency centres. We’ve rolled out GSM and LTE, in addition to the CDMA services. We’ve expanded our footprint to global from just the North American market. We’ve opened up additional data centres globally, and sales and engineering offices in India and Europe. It’s a testament to the growth in M2M, and a recognition of Aeris as a player.

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M2M business models are evolving from today’s ‘Wild West’ Straight shooting interview with Jasper’s CEO

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VIEW FROM THE TOP

M2M’s Wild West is still a ‘place in the fun’ as new players dive into IoT with little knowledge It’s all change in the delivery of M2M and IoT services. Business models are evolving from today’s ‘Wild West’, and companies are ‘acqui-hiring’, buying their way into a market they don’t fully understand. So says Jahangir Mohammed, CEO of Jasper, in a typically robust discussion with Jeremy Cowan, editor of M2M Now. But he says it’s still ‘a place in the fun’.

Tesla Model S

committed to it worldwide. What you're going to see is a tremendous amount of operational management and scale, of split-billing, and splitrating business models taking hold.

Jahangir Mohammed: Arguably the most exciting are the developments in connected cars. This has been going on for more than a year, but we're starting to see this hit the market now.

Soon, you'll start to see more embracing of global SIM technologies, particularly SIMs that can be reprogrammed over the air, or the eUICC model that has been standardised, and promoted extensively by the GSMA.

The connected car use case has really pushed the systems and processes in business models in the broader IoT space to the ‘bleeding edge’, and defined how companies can benefit consumers up and down the line. Both Audi and General Motors are launching this year with LTE in North America. For Audi it’s specifically for the A3 model in North America this year, GM for all of their models and GM has

What's exciting is that for the consumer there are multiple business models that they can choose from, so they can have their standard telematics service, which in General Motors’ case is branded as ‘OnStar’, a trial plus a subscription model. They can also purchase a WiFi hotspot in the vehicle, and that relationship is actually between the owner of the vehicle and AT&T in GM’s case. All off the same modem, the same SIM. ▼

Jahangir Mohammed is chief executive of Jasper

M2M Now: Jahangir, what key developments have you seen in machine-to-machine (M2M) and the Internet of Things (IoT) in the past year?

M2M Now

“The lowly thermostat has actually become for Google Nest and its consumers a climate control system.” Jahangir Mohammed, Jasper We’re also excited about what we're seeing out of Tesla Motors. Tesla has provided connectivity inside of the vehicle for its drivers from the get-go with its Model S. They use this connectivity not only for an awesome driving experience – for example, with a web browser embedded inside the vehicle you have access to internet-based radio – but also to be able to provide updates to the vehicle without burdening the customer. For example, Toyota recently recalled 1.9 million Prius cars worldwide. That was purely for a software update, which forced the customer to drop the car off into a Toyota service centre and leave it for several hours, if not the whole day, at incredible inconvenience and incredible cost for Toyota. On the other hand, Tesla provides software updates over-theair whenever one is available and the customer doesn't have to do anything. That's all because of the embedded connectivity inside of the vehicle. We’re really excited about what we're seeing out of connected cars.

of Garmin services. Jeremy has an expectation of getting realtime weather, Google searches, real-time traffic on that satnav unit. When Jeremy doesn't get his weather report on his device, he picks up the phone, calls Garmin, and Garmin has to figure out how to resolve those issues to be able to deliver that real-time content. At the end of the trial period, Garmin has to get Jeremy to subscribe and re-subscribe, and bill for that and provision all those services accordingly. That's a service business and that is what vexes most organisations. The challenge that organisations have isn't about hardware components; it is the delivery of service and the resulting monetisation of that service business model. That's what we see as being the difference between success and failure for most of these deployments. M2M Now: What will it take for enterprises to succeed in this space, and what is Jasper doing to make it easier for them?

The second thing that was an interesting turning point in this business in the last year was Google acquiring Nest for US$3.2 billion. That opened up people's eyes to the kind of value that the broader Internet of Things can bring to businesses worldwide.

JM: What we provide is a platform that enables enterprises to run as a service business. It's just a layer of IT that sits between the mobile operators and the enterprises, to allow enterprises to scale up their service business and to do so in a profitable way.

I don't believe people had thought about such a high valuation for that kind of business; $3.2 billion is a lot of money. Nest provides a thermostat as well as a smoke alarm that are connected via WiFi.

That's why we’ve had the success we've had, enabling these companies to transition to become service businesses, and to deliver the experience and business model that they want. Our platform helps these companies to launch, manage, and monetise an IoT service business, to do so across mobile operators around the world.

The lowly thermostat has become for Nest and its consumers a climate control system. That's an incredibly powerful service provided by one little device hanging on the wall. To think that such a device could yield that kind of valuation goes to show how valuable this business can be. M2M Now: What are the greatest challenges facing enterprises today, as more companies look to launch connected or IoT businesses?

M2M Now: What new capabilities are your partnerships going to give you? I'm thinking of your partnerships with Axeda and Giesecke & Devrient (G&D).

JM: Most people underestimate what it really means to run an IoT-enabled business. We have over 2,000 deployments on our platform today across roughly two dozen vertical industries.

JM: Thinking about G&D for the moment, it allows us to enable global deployment for multinational enterprises. Think about companies like GE, GM, Phillips; these big multinational enterprises standardise their operations for their connected devices business, they standardise how they deliver customer care, standardise their offerings, standardise their hardware. Why can’t they standardise on the SIM? That just seems like the missing link.

Having been in this business for nearly a decade, the insight that fuels us is that when a company decides to embrace M2M or IoT and enable it as part of their product, they make an important shift from being a product company to being a product and service company.

With our relationship with G&D and others in the subscription manager space, we're able to offer these multinationals everything they need to have a single SIM stock keeping unit (SKU) in their manufacturing process that can then localise to each of their regions.

Being a service company is a radical transformation for most product companies. ‘Service’ is really thinking about providing a real-time service to your customers via this connected or enabled device.

They benefit from local services, local economics from their operator partners, but still have a single piece of hardware across their manufacturing line, which eliminates complexity and cost.

A good example, Jeremy could be Garmin, a product company building satnav devices and putting them into the distribution channel. The satnav is bought by a consumer walking out of a consumer electronics store.

M2M Now: Can you give us an example?

M2M Now

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That consumer walks out with a connected device and suddenly Garmin has to know that Jeremy is now a subscriber

JM: We conducted an analysis for one company to determine what the financial upside would be if they consolidated two mobile operators onto a single SKU. We discovered that taking this step would save the company upwards of US$500,000 per month. This demonstrates that the value of

VIEW FROM THE TOP

“When a company embraces M2M or IoT and enables it as part of their product, they shift from a product company to a product and service company.” Jahangir Mohammed, Jasper

single SIM extends beyond initial manufacturing to the entire logistics chain, especially when you start thinking about devices that are distributed globally. One consumer electronics company said, ‘We have this oversupply of devices in one country and an undersupply in another, so we wanted to take that device and move it from one operator… from one country to another. We can reflash the resulting software, because we have all those controls today so that you can localise it appropriately.’ ‘However, we still have to ship back every single unit and then physically by hand pull out the old SIM, put in the new SIM and change all the resulting elements in order to get that device to work in the new country.’ This is an extraordinary expense and limits the operational agility that they want to be able to just simply make the unit transferable to any region, any country, at any time. It's a heck of a cost, and most people don't understand it until you start understanding how these guys work. The logistics of the connection components are very expensive. Jahangir Mohammed: Complete audit trail

M2M Now Jargon Buster 4G: 4th Generation mobile communications eUICC: embedded Universal Integrated Circuit Card GSMA: Global System for Mobile communications Association LTE: Long Term Evolution to 4G SIM: Subscriber Identity Module SKU: Stock Keeping Unit

With a company like G&D – and we work with other subscription manager providers as well – they obviously have responsibility for swapping the profile, the mobile operator profile on the SIM itself over-the-air. That's just the tip of the iceberg; you still need to know that the device is going to connect, to make sure all the billing relationships, the policies, the assigned rate plans or tariffs are in place to make that service go. If there's a problem, you need a complete audit trail and to know exactly what happens; if there's a failure, you need to have the failure codes to diagnose what happened. There are commercial terms and agreements and rules that have to be adhered to. That is the truth of managing a device across multiple operators, and that's the part that we handle. Axeda was focused on enabling mobile operators and many of our mobile operator partners with a solution that allows them to benefit more from revenue of the application layer. We've already integrated our solution with Axeda here in the US via our joint relationships with AT&T. We're bringing that to other operators around the world who are keenly interested. M2M Now: In what ways do you expect the M2M / IoT service ecosystem to continue to evolve?

JM: We're still fragmented as a larger ecosystem, and I think you're going to see a lot of consolidation. In the last year we've seen ILS be acquired (by Telit), and ThingWorx be acquired (by PTC), we've seen some module and modem manufacturers be acquired. We'll see more consolidation of the existing players, and we're starting to see interest by some larger traditional infrastructure players, like Cisco, SAP, Oracle, Salesforce.com, entering this market. There's still a lot of learning to be done by them, of course. We're going to see a lot of new business models emerge. Companies entering into the IoT space for the first time have a lot to learn and are making an enormous number of assumptions, many of which will turn out to be false. It's still very much the Wild Wild West; anything goes in terms of business models. (Laughter) I'm sure we’ll see a tremendous amount of business model innovation happening very rapidly. M2M Now: When you say ‘We'll see more consolidation’, which sectors will be most impacted? JM: There are a lot of platforms out there playing various roles in the stack. We’ll see more consolidation for the hardware platforms, so think of those as the more traditional module manufacturers. We've started to see some consolidation for application enablement platforms. I think we'll start to see some smaller vertical solution providers, that are specialised in niche markets, get scooped up and be part of a larger offer. For as much interest as there is in IoT and in the technology sector today, there's a tremendous lack of understanding and information about what this market truly is. As a result, you're going to see a lot of companies looking to acquire that talent and expertise, some of the larger companies who see this as the future but don't yet understand what it means. (Laughter) M2M Now: It's extraordinary that they should see the future but they don't quite see why. JM: Or even how. That's true. There's a Silicon Valley term called ‘Aqui-hires’, acquisition hiring. You go out and basically buy expertise by buying the company. I think we'll start to see a bit of that. And it will only accelerate; it's about to get really fun. We have the role that we play in the ecosystem and we're pretty good at it. It's a fun place to be.

M2M Now

PLATFORM NEWS

E.ON deploys Maingate’s mvio™ service platform to help Swedish customers cut power consumption Swedish power utility, E.ON Sverige is launching its greatest effort so far to enable consumers to control their energy consumption, by providing smart meters free of charge. The smart meter, called 100Koll, displays the energy consumption minute by minute, enabling the consumer to control their energy consumption and switch appliances on or off. Earlier pilots show that households can reduce their energy consumption by up to 15%, without reducing their comfort. If every household in Sweden reduced its energy consumption by 15%, it would cut national consumption by approximately 2.3 billion kilowatt-hours, worth SEK2.3 billion (€254 million). E.ON is distributing 120,000 smart meters free of charge.

Maingate provides M2M Connectivity Services and Information Management Services to customers around Europe. It has delivered its cloud-based service platform, Maingate mvio™, to E.ON to enable the management of information from these smart meters. The platform also controls individual appliances' consumption through the smart plugs provided in the package that consumers will receive. "When E.ON executed 'Sweden's largest energy experiment' Maingate was providing its service platform mvio™. As part of the preparations for 100Koll we performed a comprehensive procurement process, and Maingate was again selected as the service provider", said Johan Mörnstam, head of Business Innovation at E.ON Sverige.

"We are proud of the continued trust given to us by E.ON in the large scale roll-out of 100Koll," said Baard Eilertsen, Maingate’s CEO. "The success of the first generation of the 'smart meter' 100Koll proved that both consumer interest and consumers’ savings are top priorities and has confirmed our view that we are on the brink of a technology revolution where humans, machines and the capabilities to manage large quantities of data in real time create new and transformative opportunities." E.ON Sverige produces and supplies energy and energy-related services to approximately one million Swedish customers. E.ON is one of the world's largest privately owned energy companies, with 30 million customers.

Wireless Logic upgrades SIM provisioning platform for its cellular and satellite M2M customers The UK-based provider of M2M managed services, Wireless Logic, has carried out a major overhaul of its SIM (subscriber identity module) estate provisioning and control platform ‘SIMPro’. The platform enables users to remotely control a range of activities through their SIMconnected devices. Beyond mainstream features such as provisioning, tariff selection and personalised billing, the new platform has a number of applications including activation profile settings, where tailored characteristics for a specific device can be developed and then configured directly onto new SIMs. This is particularly important for estates where configuration of SIMs to specific profiling can be timeconsuming. With security and control key

M2M Now

attributes for successful M2M connectivity programmes, SIMPro delivers a one-window viewing platform to monitor data usage and activity on a per SIM basis. This functionality comes into its own when combined with Wireless Logic’s secure private network overlay ‘NetPro’, giving customers the capability to monitor real-time data use and react if and when devices demonstrate unusual patterns of activity. With all SIMs and networks terminating through one VPN, management and control procedures become more effective and seamless.

accessing SIMs across all of the UK’s and Europe’s mobile networks and additionally Inmarsat satellite, the ‘one-window to everything’ can reduce costs, create efficiencies and identify and rectify problems rapidly. SIMPro can also integrate into customers’ own systems with a new range of APIs.

The SIMPro provisioning platform already manages and monitors in excess of one million SIM-enabled devices. The applications involved range from traffic cameras to vehicle tracking, and from e-health patient monitors to vending machines. By

SERVICE DELIVERY

4 G EXPERT OPINION:

Spotting 4G opportunities, not just the cost of change KORE’s Alex Brisbourne says that the M2M industry has been too focused recently on changes in connectivity technology, particularly from 2G to 3G and 4G. But in this interview with Robin Duke-Woolley of Beecham Research, Brisbourne insists we should be more focused on the factors causing these changes and on the opportunities they bring.

Alex Brisbourne, KORE: Let’s take technology first. On the one hand our customers are deciding on the practical challenges of the right connectivity technologies, and on the other the enabling technologies available to them at the device level to be able to more easily and more rapidly build products from scratch. To date the industry at the connectivity level has been a 2G industry. At the device level, it has

been somewhat proprietary. Both of these are changing. The road to 3G and 4G technology is becoming ever clearer for everybody and, in fact, the substantial investments and improvements on 4G/LTE in particular and into carrier roaming are really starting to make that look viable in the quite near term for the broad base of M2M applications. Customers are starting to recognise the opportunity to make their applications substantially richer as a result of: the latency reduction, the improved performance, the improved reliability of the 3G/4G networks and the economics of it. ▼

Robin Duke-Woolley, Beecham Research: What are the key changes you see in the market right now for adopters of M2M?

IN ASSOCIATION WITH KORE 46

M2M Now

“We do sweat the detail, and we don’t have a particular pony that we have to whip into action.” Alex Brisbourne, KORE Over the last 10-plus years the art form has been to minimise the use of and reliance on the network. The fact that the cellular network is changing from 2G to 3G to 4G is presenting an opportunity for our customers to really make applications that have a high value quotient by making them richer. The reach of the devices is becoming more ubiquitous as you go from 3G to 4G, so the relatively small additional cost of the device for most applications – but not all – is no longer a significant impediment. If you can monetise another few dollars a month more in a richer device and application set, you are recovering your small overhead costs for the device very quickly indeed. Of course, adopters have been forced to go to 3G and 4G in North America rather more quickly than they first expected, so the market for richer applications is not quite there yet. We expect it to be much clearer in a couple of years’ time. RDW: So, moving from 2G to 3G and 4G and the enforcing of that may be helping to develop the market, rather than causing a problem? AB: Yes, I think so. Inevitably, there is always a group that believe you have got to be incredibly slim, and cheap. And there are niches in the market for which that is a valid consideration. But not everyone is in that camp. In general terms we have the same trend developing as we saw with the internet. If you have access to faster, cheaper data pipes then people will find ways to enrich and differentiate their offerings and applications. RDW: An interesting observation. Over the last few years we in the M2M industry have been talking more about the cost implications of the change and that it risks slowing down the market. But what you’re saying is – yes, it is forcing a change. It’s making people think about what they could now do because they did not have that flexibility before. So we should perhaps view this as a potential step change in the market towards thinking about the applications they could now have. Forcing the change is helping to develop the market – and that’s a good thing? AB: That’s a good way of summarising it. An additional point here is that those apps are being made richer in the US and this is percolating into other marketplaces very quickly. I would say that it is quite unusual now for us to be seeing new devices coming to market in Europe or in Asia that are not built as 3G-centric (or in some cases 4G-centric) devices. Another key change is that as a result of the complicated M2M ecosystem, the industry has largely been dominated by integrated application service providers for about 10-15 years, who have been selling discrete solutions to enterprises.

M2M Now

In the past 18 months we have been seeing a strong move towards enterprise-driven initiatives where they want to take ownership of their own destiny. This is partly for cost reasons and partly because they want to own and control their own data. So the larger scale deployments are starting to be driven by enterprises – even the enterprises that have gone the ASP route for discrete applications in the early phases. That brings us to the next part, which is the role of platforms, technology management and the increasing need to have integration of M2M data into enterprise level services.

Alex Brisbourne is president and COO of KORE

RDW: What does that mean for KORE? AB: The main point is globalisation. More than 80% of our top 50 customers use more than one service offering from KORE: different technologies, different regions or a mix. When people were using micro amounts of data, the issues were easier to deal with. Once you start running tens or even hundreds of megabytes of data within certain places, it is increasingly critical that you have in-region placement of services. The economics do not work otherwise. Providing 5GB of data in 11 European marketplaces is challenging.

Robin DukeWoolley is CEO of Beecham Research

RDW: Looking to the future, what do you think differentiates KORE? AB: We remain highly committed to the critical importance of high reliability, managed connectivity and slavishly focused on building the best possible durable connectivity hub for our customers, bringing durable networks to national marketplaces. That remains our main focus. We are continuing to infill our global map, where we look to new markets that our customers want us to provide services into. We are strengthening carrier activities more broadly in Europe and in Asia, and leveraging the more recent positions of broader satellite services in conjunction with Inmarsat. There is a lot of focus inevitably in the North American marketplace right now in reviewing with customers the technology changes underway. KORE is the only company that can provide a complete and unbiased family of connectivity solutions for 2G, 3G and 4G data rates across GSM, CDMA and satellite networks. There is no alternative that is not available to those customers needing to make changes and we are investing a great deal of money in helping advise customers and helping define their direction. To do with lifecycle, their usage, their business plans and so on – providing advice in the most appropriate way. We do sweat the detail, and we don’t have a particular pony that we have to whip into action. We match the needs of the customer.

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PLATFORMS

A whirlwind guide to M2M platforms One of the problems with fast moving technology sectors is that they quickly bring with them a plethora of jargon, abbreviations and acronyms. M2M and the Internet of Things (IoT) – two abbreviations that were little known not that long ago – are no exception. A notable example is the use of the word ‘platform’. True, this is a word that has migrated from the IT and telecommunications industry, but under the M2M umbrella it has blossomed. Emmanuel Walckenaer, Sierra Wireless: “There are various ﬂavours.”

Today, a platform can mean anything from providing the overall control of a mobile operator’s M2M offering, to the code in an embedded microcontroller, with a bunch of enterprise- and device-specific usages in between. “There are more platforms than King’s Cross Station,” said Jeremy Green, a principal analyst with Ovum. “It is one of the most abused terms in the language.”

Macario Namie, Jasper: “An enterprise doesn’t live in the world of telco speak.”

more importantly, IoT, we see various platforms. They all use platform in their rhetoric but what they provide is very different.”

Service delivery platforms When mobile network operators talk about a platform, what they normally mean is the provisioning system, which they use to set up subscriptions and manage their M2M applications. They also usually include anti-fraud and security tools. These tend to be known as service delivery or service management platforms. Some even call them connectivity management platforms, but that term can be misleading as it can also be the same as a device management platform, mentioned later. “A service delivery platform is a generic term for any platform that delivers a service,” said Omer Pesach, CTO of M2M services at Telit. “You could treat email as a service delivery platform. It depends on the service. It is a very, very broad term.”

Gilli Coston, chief strategy officer at Wyless, agreed. She told M2M Now: “The word platform can mean different things to different people. It can be a software platform, a hardware platform, part of the connectivity.”

A subset of the service delivery platform would be the subscription management platform. Also, some could include the device and application platforms mentioned later.

And Tom Gilley, M2M technical lead at InterDigital, added: “When you come to M2M or,

“A service management platform is about what happens to the mobile service itself,” said Macario

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Jeremy Green, Ovum: “There are more platforms than King’s Cross Station.”

The word ‘platform’ means many different things in the world of machine-to-machine (M2M) communications. Steve Rogerson explains what’s what.

M2M Now

The difficulty here is that the term service management platform can also be used for enterprises’ systems, and some platforms cross the boundary between the two. “I sell our platform as a service to mobile operators,” said Dan McBride, head of carrier marketing at Aeris. “But we also provide services direct to enterprises. We have a data collection and distribution cloud-based tool that lets operators offer a value add. The end user has a scalable platform. Enterprises can manage their data without having to invest in the equipment.”

Device management platforms At the other end of the scale are device management platforms, also known as connected device platforms. These can be used purely for managing the devices and are often developed and sold by the device manufacturer either for their own devices or they are more open, allowing devices from other manufacturers to be managed as well. The leading ones can connect a range of devices using different protocols, as well as analysing the data and integrating with various web-based tools. “There are various flavours,” said Emmanuel Walckenaer, senior vice-president and general manager at Sierra Wireless. “Some are more specialised in some verticals, others are more general.” M2M Now

The differences between the platforms can range from those that can handle a small number of devices to ones that can work with large fleets. Some can upgrade the software on the devices remotely. Others can check for faulty devices or unusual situations. These can be set, for example, to trigger an alert if certain parameters are breached or if there are no readings over a set period.

Dan McBride, Aeris: “Enterprises can manage their data without having to invest in the equipment.”

“An enterprise doesn’t live in the world of ‘telco speak’,” said Jasper’s Namie. “They just want to manage the services on their connected devices.” Krzysztof Kwiatkowski, head of BSS solutions at Comarch, added: “Companies produce the devices and they have these to manage the devices, providing software updates, monitoring the devices, everything related to the devices.”

Application platforms Somewhere in the middle are application enablement and application development platforms. These terms are often either interchanged or combined into one platform, but basically the enablement version is what the user world uses to handle and control their applications whereas the development would, as its name suggests, is used for writing and building applications.

Raj Kanaya, Aeris: “Application development platforms let you develop your M2M application in a quick and scalable manner.”

“Application development platforms let you develop your M2M application in a quick and scalable manner,” said Raj Kanaya, chief marketing officer at Aeris. “Sometimes the alternative is complex development work.” As an example, he said one of his customers was building the data sensor network for an aircraft. The sensors were measuring everything connected with the plane, such as temperature,

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Namie, vice-president of marketing at Jasper. “It controls all the things like processing, diagnostics, tariff controls, usage monitoring, policy management, all of the information in the process of managing a mobile service operator.”

Krzysztof Kwiatkowski, Comarch: “Some platforms are only for automotive or only for utilities.”

PLATFORMS

Thomas Larsson, Giesecke & Devrient: “Some platforms exist so you don’t need one solution for each vertical.”

pressure and so on. The data needed to be collected in real time with various parameters that would trigger alerts, and sometimes depending on data from more than one sensor. “They had complex rules to trigger the actions,” said Kanaya. “But we have a near real-time analytics engine built in. In many cases, the action needs to be done within seconds. We offer this as a service. It lets them configure the rules to create the alerts.”

Gilli Coston, Wyless: “The word platform can mean different things to different people.”

Many application enablement platforms are very market specific, though some have the tools to work across markets. “Some platforms are only for automotive or only for utilities,” said Comarch’s Kwiatkowski. “They are vertical platforms oriented on one or two verticals.” However, the same building blocks for one vertical can often be used for others. “Some platforms exist so you don’t need one solution for each vertical,” said Thomas Larsson, programme manager for M2M & Subscription Management at Giesecke & Devrient. “In these cases we focus on the applications that can be shared among verticals. This helps you achieve economy of scale because it is not application-specific.”

Tom Gilley, InterDigital: “They all use platform in their rhetoric but what they provide is very different.”

Alex Brisbourne, KORE: “The end user doesn’t care about that, they just want something they can use.”

Application development platforms can also play a crucial role as the IoT grows. One of the perceived problems is that there will be thousands of people creating applications with little or no knowledge of how these will work with other applications in the network. This can cause security and compatibility problems, but a good development platform can keep all these within acceptable parameters. “With the IoT, anybody can develop an application and they don’t worry about how that will work with the network,” said Coston of Wyless. “They are not looking at it from an endto-end perspective. This can cause problems with security. There are millions of applications and as we go into the IoT people will develop more and to an extent we want that. But that brings in security and management difficulties. If you have lots of people developing on lots of different platforms, how can you have security?”

Other platforms If life isn’t complicated enough, the word ‘platform’ also brings with it meanings from other industries. Operating systems, for example, are often referred to as platforms, so a mobile phone may use the Android platform. In the embedded and silicon industries, platform has its own meaning that impacts on M2M. Here it can just be the embedded code or tools that are used in these devices that themselves form part of an M2M system. “People like to use the word platform because it represents some form of continuity,” said Alex Brisbourne, president of KORE Telematics. “But examples have come thick and fast in this industry. It is a bit out of control.”

Conclusion InterDigital’s Gilley believes that this overuse of the word platform is just a temporary phenomenon as the industry goes through a growth phase. “I do think the industry will evolve and the terminology will evolve as well,” he said. “But they are struggling. All they are trying to do is reduce the friction to market for enterprises and consumers. Platforms are about making it easier for development teams to get things done.” Brisbourne added: “We use the word platform ourselves, but we qualify it to make it clear what is in it. It is quite confusing. But what word do you put in its place? It is a little like M2M. One of the debates 10 years ago was whether there was a better term than M2M. Then the IoT idea came along to make it sound more exciting. People still ask what the IoT is. They are trying to define IoT and how M2M fits into that. But the end user doesn’t care about that, they just want something they can use.” And thus the best advice is not to assign any meaning to the word platform. As Ovum’s Green pointed out: “You can’t be clear, because it isn’t clear.” So decide what it is you want to do and what you want to do it with and find something that does that – whether they call it a platform, system or solution. The jargon doesn’t matter, it’s the implementation that counts.

M2M Now

CONNECTED INTELLIGENCE

dataplicity â&#x20AC;&#x201C; the IoT platform for connected and intelligent devices An interview with Elliot Mackenzie (above) of dataplicity by Saverio Romeo, principal analyst at Beecham Research

M2M Now

CONNECTED INTELLIGENCE

The M2M and IoT community foresees an astonishing growth of connected devices in any domain of our societies. But, how easy is developing those devices? dataplicity, a new entrant in the IoT platform space, seems to have a simple answer to that question. We have met Elliot Mackenzie in order to discover the story and the objective of the Oxford, UK-based company behind dataplicity. Elliot Mackenzie has a strong background in process automation combining engineering in hardware, software and IT. He is Australian born and arrived in the UK in 2004 working for an academic spin-off in Milton Park with a company specialising in high performance hardware. Elliot subsequently moved into large-scale IT infrastructure automation for banks and telecommunications companies until he founded adixein Ltd, the precursor to dataplicity. Saverio Romeo, Beecham Research: What was the business focus of adixein Ltd?

third parties making their own devices. And, we moved in that direction.

Elliot Mackenzie, dataplicity: adixein was an automation consultancy advising banks and telecommunications companies around Europe and the Middle East. In 2008, we identified an opportunity to improve and automate a uniquely Australian process problem related to the geography and 3G coverage in the country. That project led to the production of our first hardware device, the one-touch Back2Base 3G Scanner. The scanner enabled trucking operators in the Australian outback to email receipts while on the move, and in doing so improved their account receivables by as much as a week.

Romeo: And the next direction was dataplicity? Mackenzie: In 2008, we established MachineForest Ltd in Oxford under the company’s original name (adixein Ltd) and created WildFoundry Ltd in 2012 to enable us to rapidly expand our R&D work, including the development effort and technology behind the dataplicity platform. After six years of activities, we are still based in Oxford but we have grown substantially and invested heavily in our engineering and innovation capability. Romeo: What is dataplicity? Mackenzie: dataplicity is an IoT platform, providing manufacturers with a robust and costeffective tool to develop, manufacture, sell and support internet-enabled devices. The platform includes: • A dashboard that includes a ‘single pane of glass’ showing all devices which reports a GPS

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Subsequent to this, we realised there was an untapped market for unattended fuel measurement systems (called ‘fuel dipping’ in the industry) in Australia. We developed HyDip tank gauging (hydip.com), which has become a product line in its own right. It became quite apparent that HyDip was a tiny part of a truly enormous picture (the IoT) and that the technology we had developed to underpin HyDip could be expanded and enhanced to support

IN ASSOCIATION WITH DATAPLICITY 54

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position showing real-time data about each device; • Real-time data capture, which includes logging of samples and documents and images of devices; • Extensive device user interface and user experience customisation options; • Firmware management; • Device and platform branding. We are particularly proud of the resilience and scalability we have engineered into the system: from the infrastructure all the way through the entire stack, dataplicity has been built to scale. The engineering team behind the platform comes from a background including robust trading systems, banking, telecoms, hardware engineering, IT automation, infrastructure management, as well as fast growth technology start-ups. Romeo: What are the benefits that dataplicity brings into the market?

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Mackenzie: We know first-hand that the use of dataplicity in conjunction with such devices leads to a significantly reduced time to market and cost of production, and to significant economies of scale (many features, such as user permissions,

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CONNECTED INTELLIGENCE

“We’ve started reaching out to the wider community including Raspberry Pi and Gumstix developers.” Elliot Mackenzie, dataplicity

are common to all devices of any type). This is especially true for hardware manufacturers who do not have significant web development or infrastructure support expertise of their own.

Elliot Mackenzie is the founder of dataplicity

For manufacturers, it means we are the technology that lets them get very sophisticated devices to market quickly, efficiently, and without duplicating development effort. dataplicity will enable the production of many connected devices which would otherwise not be commercially viable. Romeo: What is your view on the existing IoT platforms currently available in the market? Mackenzie: There are some IoT platforms which solve various parts of the management problem and indeed some that are famous and longestablished. That being said, despite wide industry recognition of several IoT platforms, most manufacturers still choose to either go it alone and develop (at very high cost) their own web tech and/or old fashioned built-in control systems, which collectively demonstrates that the problem is not solved for most. There doesn’t appear to be any one reason for this, but it feels like a lot of the existing IoT platforms understand manufacturers through market research rather than by being one. And the difference is obvious: take Google – Android fragmentation was a major problem for Google until they came up with Nexus to force a faster route to market for all the new features they wanted distributed. Although the Googledesigned Nexus is proving moderately successful in its own right, the real success for Google was that the existence of such ‘pure-Google’ handsets encouraged all manufacturers to release more timely software updates for their own Android handsets, and to support those already in circulation for longer.

those who are doing amazing things with it, but we are not primarily a data processor or data analyser in the Big Data sense. We understand manufacturers because we are one. A big part of that means that we recognise that having taken the risks of developing clever products, manufacturers also expect and deserve to own the customer relationship. This is why we are encouraging manufacturers to allow us to support them, to brand our technology with their own marks and then to extend their investment in their own brand and quality into the IoT. Romeo: What other dataplicity features are relevant for the market place? Mackenzie: Our technology was originally designed to work in the Australian outback, where digital infrastructure is sporadic at best but where reliability of communication is everything. Of course, the technology has been expanded to work everywhere but it means that our communication mechanisms are extremely robust and our system is secure without the need for a VPN. We have devices operating in environments which may only see radio/communications reception for a few minutes a month. We operate using client (device) initiated HTTPS, so firewalls are generally a non-issue even in peculiar industrial installations. Romeo: How do you see the future of dataplicity?

Romeo: How is dataplicity different from the others in the market?

Mackenzie: 2014 is all about community building. We’ll be working intensely with developers, engineers and hobbyists to lower any remaining barriers to the use of dataplicity. Following several years of extensive development, testing, and commercial use as the technology behind HyDip, the product itself launched to the general public about a week ago. We’ve started reaching out to the wider community including Raspberry Pi and Gumstix developers.

Mackenzie: dataplicity is a command and control platform for connected devices which helps manufacturers at all stages of the product lifecycle (including development and support). We are focused first and foremost on supporting developers and manufacturers, helping them to lower development and support costs, and to bring clever products to market. We are very aware of Big Data, and are an effective tool for

By working with our existing and new customers, we will be looking to add further case studies quantifying the cost savings and added benefits that may be achieved by leveraging the dataplicity platform. Our development pipeline is absolutely brimming with cool features we can hardly wait to tell everyone about, and which will ensure dataplicity becomes the IoT platform of choice for manufacturers of clever devices.

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DEVELOPMENT PLATFORM

Oracle's Java 8 set to shake up the M2M and IoT markets With the recent launch of Java 8, Oracle has thrown the cat amongst the pigeons when it comes to providing an improved development platform for M2M and the Internet of Things. Antony Savvas reports.

Peter Utzschneider, Oracle’s VP for product development: We have been very transparent to the developer community

Oracle sees Java 8 as "the most significant upgrade" to the software since it acquired Sun Microsystems and its software portfolio in 2010. Although the jump from Java 7 to Java 8 was delayed by a year to enable developers to iron out some security issues, many plaudits say it has been worth the wait.

Java integration For instance, to make it easier for developers to share their code and applications the Standard Edition (SE) and Micro Editions (ME) of Java are now being converged. The joining together of Java SE 8 and Java ME 8 will "provide a consistent experience for developers across desktop and mobile platforms," according to Nandini Ramani, Oracle vice-president of development for the Java

Platform. It "improves developer productivity and application performance, along with the ability to ‘right-size' the platform for deployment across an ever wider range of use cases," she says. Michael Azoff, an industry analyst at Ovum, says of the Java integration move, "Java 8 is the first time that the SE and ME versions have been synchronised. This has allowed Oracle to homogenise the roles these editions play in the embedded space, which previously ran to four editions and over time became silos with different APIs (application programmable interfaces)." He says, "Now, Java 8 provides common APIs across SE and ME, with portability and common tooling across the editions. This approach gives developers a smooth development experience across small to large devices, encouraging serverside Java developers to build for the embedded space." Azoff points out that Oracle is positioning Java 8 as an embedded runtime solution for Internet of

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A single upgrade to Java is seen as an M2M game changer by Oracle and its growing number of third party developers busily working around the Java platform, whose first official version reared its head back in 1996.

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DEVELOPMENT PLATFORM

Things applications, and that it already has a number of embedded space partners for Java ME 8, with Gemalto and Qualcomm, for instance, building embedded products around Java 8. In addition, Java ME 8 has been made available for a range of machines and architectures, including ARM chips and Raspberry Pi kits. "ARM and Oracle are working together to define and integrate technology components to make the Internet of Things more viable for businesses and developers," says Ian Drew, chief marketing officer and executive vice-president of business development at ARM. "The Oracle JDK (Java development kit) 8 release showcases our collaboration that will drive standards and an open ecosystem enabling developers to create applications from smart IoT devices to servers,” says Drew.

Always connected With Java 8's arrival Oracle wants us to think big about connected, always-on devices, including smart appliances in the home, wearable devices, medical sensors, connected vehicles, smart meters, and industrial controllers. Java 8 promises to provide a scalable, flexible and secure development platform for the Internet of Things (IoT) market. To support the army of developers who will deliver these devices, Oracle has trumpeted its "less code means more productivity" ethos. In addition to the convergence of the two main incarnations of Java, Oracle has unleashed its "lambda expressions" in the software, which helps create blocks of software code that a developer can “pass around” in order for it to be executed later. Lambdas (for short) allow developers to simplify the code they write, enabling them to write code that is more compact, simpler and easier to maintain – and share with others.

Peter Utzschneider: Java 8 represents a genuine career opportunity

By making it convenient to express code as data, we have enabled the creation of more powerful APIs, which in turn can improve your productivity by

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Mark Reinhold, chief architect of the Java Platform Group at Oracle, says of the move, "The introduction of lambda expressions and the related Streams API is the largest upgrade to the Java Standard Edition platform.

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In addition, there is also a new date and time API that reduces the complexity for developers when handling dates and times, especially when dealing with internationalisation and localisation for different markets. And developers building the embedded apps that will help change the Internet of Things from largely a concept to a reality, can now use one of three new "compact profiles" in Java SE 8. These predefined subsets of the full Java SE 8 specification support the creation of smaller applications for resource-constrained devices. As a result, versions of Java SE 8 can be deployed on embedded devices using as little as a 10MB static footprint and 16MB of RAM – "two-to-three-times smaller" than when using the previous version of Java, says Oracle. Also, Java 8 is now integrated with JavaScript. Despite some beliefs to the contrary, Java and JavaScript are not the same thing. While JavaScript is a popular language with features similar to Java’s, and which is ideal for transmitting code across networks, it's different. Java SE 8 also now includes Nashorn, a JavaScript engine that runs on the Java Virtual Machine (JVM) and allows Java applications to contain components written in JavaScript. When developers want to use both Java and JavaScript, says Oracle, Nashorn can deliver significant performance improvements and interoperability between Java and JavaScript code.

Community developed As the likes of IBM, Intel, Qualcomm, Red Hat and ARM have contributed to the development of Java 8 through the Java Community Process (JCP), developers in the M2M space should have greater confidence in knowing their applications will work in important markets.

And with the launch, Oracle is also maintaining its Java "backward compatibility" message, saying that Java 8 – as with previous versions of the platform – preserves the skill sets of current Java software developers and helps to protect current Java technology investments in the field.

Fresh life from Java 8 Ovum's Azoff says of the position, "Ovum believes Java 8 will breathe fresh life into the platform as one of the top choices for enterprise-grade development. "Java 8 should be viewed as part one, with Java 9 as part two of a major overhaul of the platform. Oracle’s plan to split the platform overhaul across two versions goes back as far as two years, with a key architectural reform planned for Java 9 – Project Jigsaw, the modularisation of the Java platform." But, he adds, "Java 8 has 'compact profiles', which is an interim feature that allows developers to reduce the Java footprint before full modularisation is available. "Java 9 will complete the major overhaul of the Java platform but Java 8 has enough significant changes to keep developers occupied for years ahead, and pacing the changes across the editions will ensure Oracle engineers have sufficient time to do the job right," says Azoff.

Development platform On the role of developers and the future of Java 8, Peter Utzschneider, vice-president for product management at Oracle, tells M2M Now, "We have been very transparent to the developer community, laying out our plans for Java 8 two years ago and again at the JavaOne conference last year. There were around five years between the releases of Java 6 and Java 7 – partly caused by the challenges that Sun Microsystems was facing at the time – but we have been aiming at two-year periods between versions starting with Java 7." ▼

reducing boilerplate code and providing a simpler model for leveraging today's multicore processors."

What Gemalto and Qualcomm are doing with Java 8 Digital security firm Gemalto has introduced Java ME 8 solutions based on Qualcomm chipsets to its Cinterion portfolio of cellular modules and devices.

eliminate the expense of additional processing and memory chips, and thereby reduce the overall cost, complexity and size of the solutions.

Gemalto says it has launched embedded solutions and services that simplify M2M technology and speed up application development to expand the growing Internet of Things (IoT).

“Qualcomm Technologies is a leader in providing cellular technologies to M2M customers around the world, so it was a natural step to support Java on our Qualcomm Technologies portfolio,” said Andreas Haegele, head of the Cinterion M2M product portfolio at Gemalto.

The new products will target applications from medical devices, automobiles and smart meters to shipping containers, home appliances and alarm systems. The Cinterion M2M end-to-end portfolio of solutions and services provide secure, wireless connectivity within an intelligent Java framework to support the increasing number of innovative IoT applications, said Gemalto. The Java software runs on the onboard application processors of the Qualcomm Gobi chipsets, which can

He says, “Our family of M2M products that support Java has been well received by customers. Multiple applications can run in parallel and a rich application environment allows the vast global Java developer community to reuse existing resources and speed up system integration. "The architecture simplifies over-the-air provisioning and updates, enabling remote M2M application management."

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DEVELOPMENT PLATFORM

There is a “nice uptake" of Java 8 in the developer community, helped by MOOC courses. Peter Utzschneider, Oracle

Antony Savvas is a freelance writer on communications and IT

Utzschneider acknowledges that Project Jigsaw and its resulting Java modularisation was initially scheduled for Java 8, instead of developers having to wait for Java 9. However, he maintains that Java 8, with its lambdas and its support for multicore architectures and parallel development opportunities, represents real progress. He says Java 7 saw Java "getting back on track", and confirms the Oracle position that the appearance of Java 8 is "the largest single language change in the history of Java". Utzschneider adds, "There is now a general feeling of excitement around Java. In the developer community Java 8 represents a genuine career opportunity, taking account of the exciting technologies it can support." He emphasises Oracle's commitment to further grow the number of embedded developers around Java, citing, for instance, the fact that every Raspberry Pi computer ships with Java "by default", to allow hobbyists as well as full-time developers to "do creative things with it".

compatibility and portability of the Java code. Utzschneider says, "There is no concern from the likes of the Blu Ray player people or the feature phone developers – who use Java – as everything can easily be added or modified." The Internet of Things connectivity drive will create a market worth up to US$8.9 trillion by 2020, according to analysts IDC, covering anything from smart meters and machine-tomachine telematics to internet-enabled fridges and coffee machines. IDC expects the installed base of the Internet of Things will be approximately 212 billion "things" globally by the end of 2020. While the market enablers for the rise of IoT include the ongoing development of smart cities, cars and houses and a growing culture of personal connectivity, IDC warns there are challenges that have to be overcome.

Java 8 uptake

IDC says the challenges on the supply side include a lack of standards, global scalability, and the need for a "nascent ecosystem for application development".

Utzschneider says there is a "nice uptake" of Java 8 in the developer community, helped by MOOC (massive open online course) courses and Oracle attending a large number of developer fairs around the world.

Utzschneider believes this last point is clearly being addressed when it comes to Java, M2M and the IoT. He says, "The M2M downloads for Java are very impressive, and continue to rise.”

He adds there have been no concerns from developers who already have a high degree of development work invested in products using older versions of Java, because of the backwards

Java is a major development platform helping to drive the M2M and IoT market and the appearance of Java 8 is set to consolidate its position.

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EVENT REVIEW

The Essence WeR@Home™ suite

MOBILE WORLD CONGRESS 2014:

IoT yearnings, learnings and earnings Barcelona was filled with hype about wearable technologies, there was evident progress on scalable mHealth platforms, and numerous connected car demos (see pages 28-29). But best of all, unlike previous years, there was talk of revenues.

The Internet of Things business index: A quiet revolution gathers pace is an Economist Intelligence Unit report, sponsored by ARM who quoted its findings extensively at Mobile World Congress. “Now, after more than a decade of slow progress,” according to the report, “the business community is beginning to look seriously at the IoT – to the extent that a mere 6% of business leaders believe that the IoT is simply hype.” It also found that 75% of companies from across industries are already exploring the IoT. For example insurance companies are pricing premiums based on monitored driver behaviour. The report warns, however, that “A lack of IoTrelated talent is considered the top obstacle to

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businesses using the IoT.” Fortunately, that talent was much in evidence in Barcelona.

Platforms and gateways Telenor Connexion is the first to offer M2M / IoT services over both Jasper Wireless and Ericsson platforms. Telenor Connexion is complementing its existing portfolio of connected business solutions by offering customers the cloud-based Jasper platform. The move is designed to add flexibility and to support its technology-agnostic approach. Telenor Connexion already deploys the Ericsson DCP platform, an advanced M2M dedicated platform that the company developed in 2009 before selling it to Ericsson in 2011. Per Simonsen, CEO of Telenor Connexion, said: “Needs vary within different industries and for different customers. By expanding our capabilities we ensure that our growing customer base benefits from the best offering possible and can take advantage of future development.” Engineering services and software company, Aricent launched an M2M Gateway software package in Barcelona, for the connected consumer market. Aricent’s M2M Gateway software provides M2M connectivity for multiple

Laurent Vanderbrouck, Qualcomm: Demonstrated the ability to reduce hospital readmissions

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Rapid growth in M2M / IoT can be demonstrated in many ways; by the profusion of new solutions on offer for industries as diverse as security and agriculture, it can also be seen in the enthusiastic growth projections published by analysts, or simply in the number of new contracts being awarded. However you gauge it, as Jeremy Cowan reports, almost everyone in Barcelona had something positive to say about machine-tomachine communications and the Internet of Things.

EVENT REVIEW

Amit Kroll, Essence: “Any customer can simply install this out of the box.”

With the Internet of Things (IoT) becoming a reality, there is an increasing need for disparate devices to talk seamlessly to one another and with the cloud. However, different devices such as music players, digital photo frames, media servers, and home appliances have varied characteristics making it difficult to find a single unified solution for connectivity and data exchange. Aricent’s M2M Gateway framework addresses this challenge. It supports various communications protocols and middleware stacks by having an Interworking Proxy Framework (IPF) that helps in connecting disparate devices with one another and with the cloud. The integrated package includes rich connectivity applications and modular and extensible middleware frameworks that support various technology solutions such as IP Multimedia Subsystem (IMS); Digital Living Network Alliance (DLNA); Universal Plug n Play (UPnP); 3GPP- Dynamic Adaptive Streaming over HTTP (DASH); Media Transfer Protocol (MTP); HTTP- Progressive Download; Microsoft Smooth Streaming (MSS); Apple HTTP Live Streaming (HLS); and Miracast.

“Aricent’s M2M Gateway framework addresses the challenge of (finding a unified solution for device Analytics connectivity Data Blue Telecom Consulting (BlueTC), a Madridand data based telecom service consultancy, has launched two new solutions, in machine-to-machine (M2M) exchange).” communications and predictive analytics for communication network performance.

One solution suite applies predictive analytics to the complex telecommunication networks. Predictive Performance Analytics helps operators to plan the networks’ development and capacity. It anticipates issues such as bottlenecks which

could jeopardise the quality of service offered to mobile subscribers. The BlueTC M2M Aware Networks Suite is, in fact, a series of solutions. The first focuses on facilitating fast service launches of M2M communications services via non-intrusive deployments on existing networks. Based on virtualised networks’ technology, these solutions can save up to 75% in OpEx or CapEx compared with traditional networks.

Home security services Herzliya, Israel-based Essence is now working with Russian distributor, GulfStream to offer its simple, branded DIY smart home kit. They aim to overcome one of the major obstacles preventing CSPs offering services for security and connected homes; the problem of installation. “Any customer can simply install this out of the box,” says Amit Kroll, Essence’s marketing strategy director. “The service provider doesn’t have to worry about anything. They just send the kit to consumers, and the consumers install a complete home security and connected home system by themselves. In 15 minutes, you can have a system that works in your home and is managed via your mobile phone with absolutely no hassle.” This removes the need to train and send out support personnel. The Essence WeR@Home™ solution can be self-installed, with simple set-up, and remote maintenance tools for service providers.

Mobile health services Qualcomm Life, Inc., the healthcare-focused subsidiary of Qualcomm Inc set up in 2011, is to work with solution providers, Medixine, Next Step Citizen and PARI. These new customers will help physicians to engage patients in preventive self-care. Using Qualcomm Life’s 2net™ Platform, these companies now have access to one of the

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applications including building automation, security, automotive, energy management, and connected entertainment at home, retail and corporate environment.

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largest open and non-exclusive ecosystems of medical device and service companies in the mobile health industry.

Dr. Ralf Guckert, Orga Systems: Create innovative offerings from re-usable and pre-manufactured building blocks

Per Simonsen, Telenor Connexion: Needs vary within different industries and for different customers.

“Significant pilot trials of mHealth tools and solutions to remotely monitor patients with chronic diseases have been conducted by hospitals in Europe and demonstrated the ability to reduce hospital readmissions, length of stay, and the associated costs,” explained Laurent Vandebrouck, managing director of Qualcomm Life in Europe. “Together, we expect to see solutions that enable remote patient monitoring and symptom diagnosis to solve issues related to the lack of healthcare resources.” Finland-based Medixine specialises in multichannel communication solutions for healthcare and wellness, and will leverage the 2net device connectivity platform to create an integrated end-to-end solution for healthcare providers, payers and pharmaceutical companies. Next Step Citizen will offer remote patient monitoring across Denmark’s regions and municipalities in Q1, 2014. Qualcomm Life’s Continua-compliant 2net hub and platform removes the complexity of the connectivity infrastructure, allowing Next Step Citizen to focus on application and service development and delivery. Germany- based PARI, a specialist in nebuliser systems, is also basing its telemedicine strategy on 2net technology. PARI has reportedly chosen Qualcomm Life as its connectivity provider because of 2net’s global expansion across international markets, and for its fast track process for safe and secure device and data integration.

Customer experience

Comverse’s M2M operational dashboard

To enhance the customers’experience of M2M services you may have to begin in the back office. Orga Systems’ new GOLD Catalog and Order Management system is designed to enhance a CSP’s ability to monetise new LTE and digital

services and to take advantage of smart bundling opportunities. The Paderborn, Germany-based software vendor’s central catalog is designed to enable service providers to launch, sell, deliver and monetise products faster and at a lower total cost of ownership (TCO). Dr. Ralf Guckert, CTO, commented: “GOLD COM drives greater operational efficiency and reflects our vision to become one of the leading real-time convergent billing software vendors. Our product offers CSPs the ability to create innovative offerings from re-usable and pre-manufactured building blocks in a faster manner, while reducing IT efforts in billing and order management.” The GOLD Catalog and Order Management product is service-agnostic while supporting all services from mobile, over fixed to digital. In combination with Orga Systems` GOLD Convergent Charging and Billing it provides multi-channel selling, order entry, customer order delivery and billing. We spoke to another global provider of telecom business solutions for CSPs, Comverse, which is focusing on the evolution through standards of the service experience for its customers’ customers. Comverse can call on a product portfolio that includes business support systems (BSS), policy management and enforcement (PCRF), and digital services all backed by its managed and professional services. Gil Kazes, Comverse’s Digital Services domain expert used the Congress to demonstrate how CSPs can turn customer data across all touchpoints into actionable intelligence. This is designed to enhance the user experience and drive marketing and associated revenues. He showed how expert managed services – including support for M2M, multiplay, MVNOs and new business models – are supporting CSPs worldwide.

Components Aside from the back office developments, changes to M2M and consumer connected devices are placing great pressure on component suppliers, few more so than antenna manufacturers. California-based Ethertronics, a private company with 200 staff has just shipped its one billionth antenna. These are employed in mobile phones, laptops, healthcare and embedded automotive devices. According to Laura Taylor, director of marketing communications, there has been an increase in the use of passive antennas “because of LTE bringing 40-plus bands for global roaming. LTE also requires two antennas, so we’re squeezed for space on there.” If you then factor in demand for thin designs, batteries and displays, it’s easy to see why the available space is reduced. M2M devices can also be in metal boxes which are not always designed for wireless communications, furthermore signals can be compromised for environmental reasons.

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Market Data and Analysis. Business Consulting. Custom Research. Consumer Insights.

Strategy Analytics helps clients build defensible, distinctive strategies to win in complex technology markets, on a global and regional scale. We deliver accurate market data at a granular level that few companies can match. Our quality data is supported by the expert analysis and superior responsiveness that are vital to client decision making. Market coverage includes: wireless devices, automotive electronics, consumer electronics, enterprise, entertainment and media, defence systems, telecommunications infrastructure, pricing and services. Our focused M2M and Automotive teams are industry recognised sources of global market infrastructure, device, competitive landscape and value chain insights.

For more information visit: www.strategyanalytics.com .strategyanalytics.com

EVENT PREVIEW

Connected Cars 2014 June 24-25, 2014 http://connectedcarsworld.com RAI Amsterdam Europaplein 2-22 Netherlands 1078 GZ

Simon Euringer, head of ConnectedDrive at BMW

Matt Hatton, director, Machina Research

Francesca Forestieri, of GSMA’s mAutomotive division

The RAI Centre, Amsterdam which is to host the event

Connected Cars 2014:

Turning connected cars into collective revenue More than 3,000 attendees, 125 exhibitors and 250 speakers are ready to take on the greatest challenges surrounding RoI in the connected automobile sector: How to monetise the market and engage customers. M2M Now’s deputy editor, Georgina Elrington, assesses what to expect at Connected Cars 2014, co-located with the LTE World Summit, in Amsterdam.

eUICC: embedded Universal Integrated Circuit Card LTE: Long-Term Evolution to 4G OEM: Original Equipment Manufacturer MNO: Mobile Network Operator RoI: Return on Investment SIM: Subscriber Identity Module

Connected Cars 2014 is gearing up to host automobile manufacturers, LTE connectivity players, app developers, content providers, insurers, leasing companies, and their entourage of technology partners. Collectively, they hope to unlock some of the barriers en route to profitability. More than 20 sessions will dissect every revenue-generating component of the sector – revealing which automakers have already discovered how to make money from connected car data. Valuable insight, to successful business models and strategies, will be available from the likes of: Daimler, PSA

Peugeot Citroen, FIAT, Lamborghini and Scarlet Motors.

Themes Synchronising with the neighbouring event, presentations will drive the connected car beyond simple crash notifications and remote diagnostics. Given predictions that LTE cars will become mass market in 2014, Matt Hatton, Machina Research, will address LTE & the Embedded SIM: Mobile Technology Evolution & the Impact on the Connected Car. He will uncover some of the technical and commercial issues, how the landscape is changing, and the

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M2M Now Jargon Buster

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Who will proﬁt most from cars’ newfound connectivity?

implications for auto manufacturers – touching on 2G sunsetting, LTE limitations regarding roaming and band fragmentation, and embedded SIM/eUICC. A session entitled, Progressing with Remote SIM Management, will ask what advantages can be delivered to the connected driver, the importance of keeping the eUICC standard open to development, safe data transportation and monetisation, and how European regulation can evolve to support roaming. Another key address, Taking Enterprise Solutions Up a Gear, will offer advice when designing a profitable solution, including how MNOs need to respond to automotive service provider reliance on connectivity, as well as monetisable in-car telematics for insurers.

Infotainment Exploring the LTE Roadmap to an Advanced In-Car Experience, David Turner, infotainment engineer, Bentley, UK, will nail down the value proposition for multi-device infotainment systems. He will convey how car manufacturers currently engage with content and app developers, and what OEMs can offer the entertainment providers beyond the smartphone platform. End user presentations will deal with how tablets and smartphones can be incorporated into in-car entertainment. An ecosystem panel will also review emerging market growth predictions for telematics worldwide, break down what LTE can bring to infotainment services, and discuss what consumers are willing to pay for.

Big business models Addressing how connectivity will turn vehicles into revenue rollers, speakers will examine pricing models to

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offer attractive, consumer data plans. Discover the options and implications as car manufacturers pitch Freemium, Pay-as-you-Drive, and tethered smartphone packages before braving questions from the audience. Simon Euringer, head of ConnectedDrive at BMW, Germany, will bring ideas for Unlocking the Layers of the New Connected Cars Ecosystem. His paper will show how telematics will evolve to reshape the driver experience. He will also openly ask if manufacturers will become simple component suppliers with the internet giants being the biggest profiteers.

Operating systems, Big Data & traffic analytics Visitors will be privy to considerations concerning operating systems to power the ultimate in mobile computing (on wheels) across a range of devices. Speakers will also examine how cars might share critical, monetised information to progress road systems, safety, and traffic management. And overarching themes such as Bringing Personalisation through Data Analytics and Putting Privacy & Data Management in the Driving Seat will explain how to communicate insurance telematics to customers securely, as well as how to leverage wireless and app technology to utilise and monetise collected data. As Francesca Forestieri, of the GSMA’s mAutomotive division stated last year: “The range of connected car services is constantly expanding and only our imaginations today limit the possibilities.” If the rate at which the market has evolved over the last 12 months is anything to go by, Forestieri’s sentiment has a long and healthy shelf life.

M2M SUMMIT PREVIEW SPONSORED COLUMN

‘We have to join forces’ Thousands of companies across all industries already invest in M2M communication. Experts estimate that in 2014, global revenues realised through M2M applications will be as high as €42 billion. However, there’s no doubt that more needs to be done.

The author is Eric Schneider, chairman of the M2M Alliance

One of the biggest challenges is to develop open platforms, open standards and easy to use guidelines that enable seamless communication between all solutions, companies and countries. It is, therefore, of the utmost importance that we join forces.

depend on our innovative solutions. We simply cannot afford to miss out on the opportunities that M2M provides. Our governments must recognise the potential of M2M applications and how they can strengthen our economies.

The M2M Alliance represents the interests of the machine-to-machine (M2M) industry by creating better conditions for attractive and profitable M2M solutions through constant interaction with all parties. As the world’s largest M2M association, we are in a constant dialogue with the providers and users of M2M solutions as well as with politicians to pave the way for M2M and the Internet of Things (IoT).

A great opportunity to discuss the challenges that M2M technology is facing is our annual M2M Summit in Düsseldorf, Germany (“From technology to business” – October 20-21). The event is a unique platform that offers experts and visitors from all over the world the chance to exchange ideas, and to present themselves to market leaders and potential business partners. Last year, more than 1,000 participants from over 30 countries attended the M2M Summit – another indicator that we need global solutions for a global economy.

Europe is renowned for creativity in engineering and technology. Our jobs and competitiveness

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